A significant number of citizens has left New York as pandemic outbreak started. Yet, many others with lower earnings have moved into the city instead, study delivered on Tuesday reveals.
All things considered, the city has lost about 70,000 residents this year, resulting in approximately $34 billion of lost income, Unacast analysts estimate.
Around 3.57 million people left the Big Apple between Jan. 1 and Dec. 7 2020 according to Unacast anonymized phone location data study. However, the study shows that about 3.5 million people with lower earnings moved into New York in the same months.
“The exodus isn’t as big as people have been talking about,” stated Thomas Walle, CEO Unacast. “Maybe the greater impact is how the population is changing and how the demographics are changing.”
According to Walle, this year’s average income of prosperous Tribeca neighborhood ex-residents amounted to $140,000. The newcomers, however, earned an average of $82,000, he said.
The double impact on both demographics and income in New York City may produce lasting ramifications in post-pandemic period. “The big question is, 'How does real estate and retail in particular adapt to that?'” said Walle.
The analysts noted that transformation of population may result in upscale brands being replaced by budget-friendly ones. As for real estate market, there may be a shift towards more affordable options, Walle believes.
An earlier report delivered by StreetEasy reveals a rise in a number of open jobs and a drop in rent prices in wealthy neighborhoods between February and July. However, housing prices in less costly areas continue rising.