New York City is a vibrant city with many economic possibilities. Its cultural diversity, as well as its various entertainment outlets, encourages people to flock to the city for new opportunities. However in 2017, what are the economic trends in New York City? Are their areas that are growing more than others?
Economic Trends for New York City in 2017
New York City is a vibrant city with many economic possibilities. Its cultural diversity, as well
as its various entertainment outlets, encourages people to flock to the city for new opportunities.
However in 2017, what are the economic trends in New York City? Are their areas that are
growing more than others?
New York City is currently experiencing a slow down in construction projects. The only borough
that recently experienced a slight uptick in projects built was the Bronx, an area that has seen a
great deal of expansion and renovation. Financial experts suggest that the amount of construction
projects started in early 2017 will most likely be lower that average but may gain momentum
during and after the summer months.
For the first time in years, New York City experienced a slight decrease in rental rates, starting
around October 2016. Currently, the average rental prices hovers at about $2,300. If the
construction industry continues to grow, we may see a slight fall in rental prices because of the
influx in units. However, experts predict that the rental prices will rise in future years. Housing
prices have started to slowly increase, especially in the outlining boroughs such as Queens and
the Bronx. Citywide, the average housing price is about $630,000, making it still one of the most
expensive cities to purchase in.
According to the New York City Economic Development Corporation, New York City gained
about one thousand jobs, ending a long period of consistent job loss.
Within New York City, the unemployment rate hovers at around 5%, which is fairly low for a
large city. The largest factor to the unemployment in New York is “frictional unemployment”,
which is when a worker is temporarily unemployed because he or she is looking for another job.
In 2017, experts suggest that Manhattan and Queens will outperform other boroughs such as the
Bronx in terms of employment and offering jobs with higher wages. In Brooklyn, industry
professionals suggest that the technology industry will continue to grow rapidly, as it competes
with Silicon Valley in California.
Cost of Living
In New York, the cost of living still remains high and prices still continue to rise for certain
goods and services. New York City just instituted a new minimum wage, but experts suggest that
the consumer may not feel the true effect of the higher wage due to rising food costs.
In the coming months of 2017, New York City may see some growth in certain industries but
most economic experts agree that there will not be any large spikes in economic activity. Certain
boroughs like the Bronx may see some slight growth in construction and others such as Brooklyn
will expand its tech industry but most areas within New York will flat line through the remainder
William Doonan is a tax law and legal expert in Bronx, NY.