What’s Driving Buyers from Los Angeles to New York City?

The dynamic nature of the real estate market often reflects broader societal and economic shifts, and one noticeable trend has garnered attention in recent years: the growing number of buyers moving from Los Angeles to New York City. Jennifer Mulberg, a licensed real estate salesperson with Christie’s International Real Estate Group, has observed an increasing influx of Californians turning their attention to the Big Apple.

“New York City has become an appealing alternative to Los Angeles for buyers who are concerned about high taxes, recent wildfires, and California’s slower post-COVID recovery,” explains Mulberg. These are just a few of the factors driving this migration—here’s a closer look at why some Angelenos are trading palm trees for skyscrapers.

While New York City and Los Angeles were both hit hard by the pandemic, the two cities have navigated the post-COVID era with different trajectories. “Los Angeles’ recovery from the pandemic has been slower in some areas, particularly in commercial real estate and office space,” says Mulberg. “New York City, on the other hand, has seen a stronger bounce-back, with a more active return to office culture, a resilient job market, and a revitalized real estate scene.”

For many buyers, this economic stability and revitalized energy make New York City a more attractive place to live and invest. The city’s quick recovery has bolstered confidence among potential residents, particularly those who value access to thriving job opportunities and cultural vibrancy.

California’s persistent wildfires pose significant risks to property owners, leading some to rethink their long-term investment strategies. Earlier this year, devastating wildfires displaced many families and destroyed properties throughout the Los Angeles area. Mulberg highlights that several of her clients relocating to New York City were directly affected by these disasters.

“California has been increasingly affected by devastating wildfires, leading to rising insurance costs, property damage, and air quality concerns,” says Mulberg. “New York City does not face the same fire-related risks, making it a safer bet for those looking to avoid climate-related disruptions.”

For buyers prioritizing safety and stability, New York’s relative immunity to wildfires provides peace of mind and bolsters its appeal as a long-term destination.

Both California and New York are known for high taxes. However, New York’s tax policies and structure can offer advantages over California’s, particularly to high-net-worth individuals. “California’s income tax is the highest in the country, while New York City offers opportunities for lower combined state and local tax rates in certain cases,” Mulberg explains. Additionally, New York City lacks the wealth tax proposals that California has debated, which has created additional uncertainty for buyers on the West Coast.

This favorable tax environment has not gone unnoticed. Professionals in high-income brackets, such as finance experts, hedge fund managers, and cryptocurrency investors, increasingly see opportunities in New York that outweigh the financial considerations of staying in California.

New York City continues its reign as the financial capital of the United States, and many cryptocurrency buyers and fintech professionals are relocating from cities like San Francisco and Los Angeles to enjoy its unique advantages.

“New York City is becoming a top destination for cryptocurrency buyers from San Francisco and tech and finance professionals from Los Angeles,” says Mulberg. She points out that the city’s prominence in fintech and blockchain innovation makes it an ideal environment for networking and business growth. Major firms like Coinbase, Gemini, and prominent blockchain startups have set up operations in New York, and traditional financial institutions are increasingly incorporating crypto into their portfolios.

Mulberg explains, “The presence of institutional investors and hedge funds integrating crypto into their portfolios makes New York City an attractive base for serious crypto investors.”

For buyers accustomed to spacious homes and suburban backyards, Brooklyn has become a standout option. Mulberg recently closed a $4.95 million townhome in Park Slope for a Los Angeles client. The property exemplifies what many California buyers are looking for when relocating to New York City.

“This deal reflects the demand for space and privacy,” says Mulberg. “Many California buyers are coming from homes with more space and are reluctant to downsize into a Manhattan condo. Townhomes offer the best of both worlds—private outdoor space, multiple floors, and a neighborhood feel.”

Brooklyn neighborhoods such as Park Slope offer more than just square footage. With tree-lined streets, historic brownstones, and a family-friendly atmosphere, the borough has carved out a niche among former West Coast residents. “Neighborhoods like Park Slope appeal to buyers used to charm and history, similar to San Francisco’s Victorian homes or Los Angeles’ historic districts,” Mulberg notes.

Also, Brooklyn provides a quieter, more community-oriented lifestyle while maintaining proximity to Manhattan’s urban amenities. This balance of space, outdoor living, and cultural vibrancy makes it a compelling choice for buyers seeking a transition from sprawling Los Angeles suburbs.

Beyond financial and climate factors, lifestyle differences between the two cities heavily influence buyer behavior. “New York City offers a more walkable and transit-friendly environment compared to Los Angeles’ car-dependent lifestyle,” says Mulberg. For those seeking high-end urban luxury, cultural experiences, and easier accessibility, New York’s dense, vibrant atmosphere often wins over Los Angeles’ sprawling layout.

“High-end buyers looking for urban luxury may find New York City’s lifestyle more appealing. Whether it’s world-class dining, cultural institutions, or ease of transit, New York City has something distinct to offer,” Mulberg explains.

While California and Los Angeles continue to offer numerous advantages, more buyers are viewing New York as a strong alternative. It represents a combination of economic stability, reduced environmental risks, cultural vibrancy, and strategic opportunities that appeal to high-net-worth individuals and professionals alike.

“The past few years have been relatively turbulent for both California and New York,” says Mulberg. “But right now, New York City has positioned itself as an outstanding option for those seeking a change, whether for economic, environmental, or lifestyle reasons.”

For Los Angeles buyers in search of a fresh start or investors aiming for lucrative opportunities, the Big Apple might just be home to their next big move.