In the 1970s, New York City endured a significant population decline, losing over 10 percent of its residents, or approximately 823,000 people. This mass exodus was accompanied by rising crime, deteriorating public spaces, and a city infrastructure marred by graffiti. Financial instability compounded the crisis, and by 1975, New York had to rely on both state and federal support to stave off bankruptcy. It took nearly two decades of concentrated effort to reverse this trend, restore quality of life, and attract residents back.
Now, following the COVID-19 pandemic, New York is facing a similar crisis. Despite a peak population of 8.8 million in April 2020, by July 2021, over 550,000 residents had reportedly left the city—a reduction of about six percent. The pandemic accelerated factors like remote work, high cost of living, and concerns over safety and public health, which have continued to shape residents' choices in favor of other cities or suburban areas.
Yet New York is not alone. Other major American cities, including San Francisco, Chicago, Los Angeles, Philadelphia, and Boston, are experiencing comparable trends in population decline or stagnation. The consequence of these losses is decreased tax revenue, reduced spending, and significant challenges to maintaining a desirable quality of life. For New York, this is particularly concerning as only 30 percent of residents feel life in the city is "good" or "excellent," a steep drop from 50 percent in 2017.
To bring people back to New York City, the focus must be on quality of life—addressing safety concerns, improving affordability, and revitalizing public spaces. Success will require investing in education, housing, infrastructure, public safety, and cultural amenities. If New York can reverse the negative perceptions and create a sustainable model for growth, it stands a chance of re-emerging as a vibrant, competitive metropolis.
The Current State of New York City
New York’s recent struggles are rooted in budget limitations that have impacted quality-of-life services. Historically, city agencies responsible for education, safety, environmental services, parks, culture, housing, and transportation received regular budget increases. However, in recent years, as the population has declined and the economic fallout from the pandemic has constrained resources, these budgets have stagnated or faced cuts. A shrinking tax base has limited the city’s ability to maintain, let alone improve, services, which contributes to a feedback loop of decline: fewer resources lead to lower quality of life, which in turn drives even more residents away.
Furthermore, rent prices have continued to climb. Despite overall demand waning in some sectors, rent increased by roughly 17 percent since the start of the pandemic, pricing out many residents and reducing housing affordability—a key component of urban desirability. The Citizens Budget Commission reports that only about one in ten residents feel the city adequately addresses housing needs, and only half of New Yorkers feel safe on public transportation, compared to over 80 percent in 2017. This data underscores the need for city leaders to prioritize initiatives that can restore residents' confidence in the safety, affordability, and overall livability of New York City.
Learning from the 1970s Crisis
New York's recovery from the crisis of the 1970s offers valuable insights into what might work in the present context. In the years following that downturn, the city invested in revitalizing public spaces, improving safety, and promoting cultural offerings to make urban life more appealing. Partnerships between government agencies, private companies, and community organizations played a critical role in reinvigorating the city's infrastructure and cultural landscape.
For instance, public parks were restored, crime rates were brought down significantly, and tourism was marketed as a cornerstone of the city’s economy. This multifaceted approach attracted new residents and businesses, creating a "virtuous cycle" of growth and reinvestment that enabled further improvements. The lesson from this era is that a well-rounded investment in various aspects of urban life can build momentum for long-term growth and stability.
To bring people back now, New York must adopt a similar holistic approach, using targeted investments and policy reforms to address housing, public safety, transportation, and other quality-of-life issues.
Strategies to Rebuild Quality of Life
Affordable Housing Initiatives
One of the most pressing challenges is housing affordability. New York’s high rent prices have forced many people to reconsider living in the city, pushing them to the suburbs or to other more affordable metropolitan areas. To attract and retain residents, the city must pursue affordable housing policies that not only expand the availability of affordable units but also stabilize rents. This could include zoning reforms to encourage the development of mixed-income housing, offering incentives for developers to build affordable units, and creating tax abatements or subsidies for low-income residents.
Expanding affordable housing would require support from both local and state governments, as well as partnerships with private developers. By prioritizing affordability, New York could foster a more inclusive urban environment where people of diverse income levels can live and thrive.
Enhanced Public Safety
Safety remains a top concern, with only half of residents reporting that they feel safe using public transportation. Increasing the visibility of law enforcement, along with implementing community-led safety programs, could help restore a sense of security. Deploying mental health professionals alongside police officers in situations that involve mental health crises may also reduce incidents of violence and improve public trust in law enforcement.
Moreover, increasing the presence of public security personnel, improving lighting in transit areas, and implementing faster response systems for emergency situations could enhance perceptions of safety and encourage more people to utilize public spaces and transportation.
Public Transportation Improvements
Public transportation is essential for any major city, and in New York, the subway system serves as the city’s lifeline. But aging infrastructure, delays, and safety concerns have eroded public confidence. Increased investment in subway modernization, improving accessibility, and adding more frequent service options could make public transit more appealing and reliable.
Collaborating with the Metropolitan Transportation Authority (MTA) on these initiatives, as well as exploring opportunities for federal infrastructure funding, would be essential steps in improving the system. Making the subway safer, cleaner, and more efficient would increase ridership and support economic activity throughout the city.
Revitalizing Public Spaces and Cultural Amenities
Revitalizing public spaces, parks, and cultural centers can enhance the appeal of urban living. Cities thrive when they offer opportunities for community engagement, leisure, and recreation, and New York's public parks and cultural institutions are a critical part of its identity. Investing in the maintenance and improvement of parks, creating more pedestrian-friendly areas, and supporting cultural events could draw residents and tourists alike back into the heart of the city.
Additionally, supporting local artists and entrepreneurs by providing affordable spaces for studios, pop-up shops, and community events could contribute to a vibrant city culture that celebrates and promotes diversity.
Addressing Cost of Living Beyond Housing
Beyond rent, the general cost of living in New York—including food, transportation, and healthcare—can be prohibitive for many. Offering tax relief for small businesses and creating programs to support essential services at lower costs can make the city more accessible to people across a range of income levels. By developing a supportive environment for small businesses, the city can foster a more robust local economy and improve overall affordability for residents.
Marketing New York’s Strengths
To counter the allure of suburban living, New York must emphasize its unique strengths in its branding and marketing efforts. New York’s vibrant culture, diversity, and career opportunities remain unmatched, and by showcasing these strengths, the city can reposition itself as a desirable destination for professionals, families, and entrepreneurs alike. Partnerships with local influencers, targeted advertising campaigns, and hosting major events could be effective tools in drawing people back to New York.
Looking Ahead: A Blueprint for Renewal
Ultimately, New York City's future hinges on its ability to retain and attract a growing population. By addressing core issues around affordability, safety, transportation, and cultural engagement, New York can create a livable, thriving environment that appeals to both current residents and potential newcomers. The city’s response to this challenge will require political will, collaboration across sectors, and a commitment to reinvestment.
Revitalizing New York will not be easy, but the city's history demonstrates its resilience and capacity for renewal. With a focused and sustained effort, New York can re-establish itself as a vibrant, dynamic city that people are proud to call home. By tackling today’s challenges head-on, New York can once again position itself as a global leader in urban living, welcoming new generations of residents and ensuring a prosperous future.