New York City witnessed a notable decrease in its population last year, with census estimates revealing a loss of nearly 78,000 residents, bringing the city’s total population down to 8.26 million.
This trend represents a continuation of the migration away from the city, although at a slower pace compared to the last year when over 126,000 individuals left.
Manhattan was the only borough to experience an increase in population, with a modest gain of approximately 3,000 people.
In contrast, the Bronx saw almost 1.9% of its population leave, equating to more than 25,000 people.
Brooklyn and Queens witnessed population declines, with more than 28,000 and 26,000 residents leaving, respectively.
The city’s population had declined for years, even before the COVID-19 pandemic. However, it experienced a massive exodus during the pandemic’s peak from April 2020 to July 2023, resulting in the loss of over 550,000 residents, representing a decline of more than 6%.
The largest annual decline occurred between 2022 and 2023, during which over 101,000 people left, as the United States Census Bureau reported.
This population decline is also contributing to the state’s economic stability, as it has led to fewer Personal Income Tax (PIT) filings.
A report released by the Office of the State Comptroller reveals that in 2020, New York State saw its peak loss period, with 1 out of every 100 Personal Income Tax (PIT) filers departing, marking a fourfold increase from the pre-pandemic average.
PIT, as the largest state tax revenue, contributed over $60 billion in 2021.
The state’s financial and insurance sector also faces threats from this migration trend, accounting for 5% of employment and 16% of the GDP.
During the State Fiscal Year 2023, the securities industry significantly bolstered New York’s tax revenues, injecting $28.8 billion, constituting 27.4% of the state’s total tax income.
However, a concerning trend is emerging as financial firms consider relocation or expanding their operations outside New York.
This shift poses a substantial risk to the state’s economy, potentially forfeiting billions in economic activity and revenue that could have been generated within its borders.
Most New Yorkers are choosing Florida as their prime destination, with over 58,000 individuals exchanging their New York driver’s licenses for Florida licenses last year.
The allure of Florida, with its beaches and lower cost of living, was highlighted by residents who made the move.
New Jersey has also become a popular alternative, offering financial benefits and a safer living environment compared to New York City’s rising living costs and safety concerns.
City officials, however, have contested the latest population decline figures, arguing that they do not fully account for the recent influx of asylum seekers and people living in communal accommodations.
Despite the census estimates, the Department of City Planning suggests that the city’s population has remained largely unchanged between July 2022 and 2023.
Nonetheless, the challenge of accommodating 64,600 migrants remains, with city spending averaging $387 per day for each migrant household’s housing and food needs.
Mayor Eric Adams anticipates the crisis will cost the Big Apple $10 billion in the upcoming fiscal year.
Queens Borough President Donovan Richards acknowledged the trend of native New Yorkers leaving the city due to the high cost of living, especially within the Black community.
Richard stated, “Historically, the migration was from the south to the north. Blacks are going back south because it’s cheaper to live. I have family members who have relocated. The challenge we face is the affordability crisis. We have to do something about the cost and supply of housing.”
