Markets 
A major blue city saw its population shrink last year after two years of strong growth.
New York City’s population declined in 2025, resulting in a net loss of about 12,000 people. The drop follows post-pandemic gains of 70,000 in 2023 and 163,000 in 2024, driven largely by increased immigration, including asylum seekers, according to an April 20 report from the Citizens Budget Commission.
“Population growth in 2023 and 2024 was driven by the upswing in international in-migration, primarily a surge of migrants and asylum seekers,” the report noted. “In 2025, the trend once again reversed as tighter immigration policy reduced international in-migration by 70 percent and domestic out-migration ticked up.”
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In total, the Big Apple lost a net 114,000 residents to other parts of the U.S., up from 94,000 the year before but still well below the pandemic-era peak net outflow of 330,000 in 2021.
Most departing New Yorkers stayed close to home, relocating to Long Island, Westchester, and nearby states such as New Jersey, Connecticut, and Pennsylvania, the report noted.
“The city has long been a magnet for talent and opportunity, but recent out- and in-migration changes – driven by the pandemic, immigration policy, affordability and taxes, and quality of life issues – reveal a future that may not replicate past growth,” as noted in the report.
Housing remains a major factor in whether residents choose to move to, stay in, or leave New York City. Public services also play a role, the report noted.
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Median asking rent climbed nearly 7% in 2025 to $3,585, Realtor.com reported.
“It comes as no surprise that rent-burdened households are leaving New York City,” Realtor.com economist Jiayi Xu told FOX Business. “With rents stubbornly high and homeownership remaining out of reach for most, the city leaves rent-burdened residents with little options.”
Xu noted that in the first quarter of 2026, the median asking rent reached $3,616 – requiring about $145,000 in annual income to meet standard affordability benchmarks. By comparison, the city’s median household income is roughly $85,549.
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“With so little left over to save, the path to homeownership is effectively closed off for most – and for many, leaving is the only rational response,” Xu said.
The shift also coincides with the election of Mayor Zohran Mamdani, following a campaign that included a proposed rent freeze – a policy some economists warn could further reduce housing turnover, Realtor.com reported.
The report also noted that it is not just the wealthy that are leaving the city.
“More New York City residents of all incomes, races, ethnicities, and ages have moved to other parts of the U.S. than moved in,” it said. “Such broad-based domestic outmigration demonstrates that many differently-situated New Yorkers no longer find New York City’s value proposition compelling.”
From July 2024 to July 2025, blue states such as New York, California, Illinois, New Jersey and Massachusetts continued to see net population losses, according to the Heritage Foundation, citing data from the Census Bureau.
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