Future of New York

What’s next for the Big Apple?

02 Feb 2022

Introduction

New York’s unenviable position as an epicenter of a global pandemic cast considerable doubt about its long-term durability as a thriving center of American finance, culture, and the arts. The city lost numerous lives, suffered an exodus of residents, and saw many business establishments shuttered permanently. Tourism plunged, unemployment spiked, and the severity of the economic contraction was unlike any New York had seen before. Investors were, quite understandably, unnerved.

Fortunately, the anxiety began to wane as the year progressed and the introduction of vaccines heralded the promise of an economic recovery, albeit one subject to periodic obstacles. By the third quarter of 2021, demand for residential housing had resumed and plans were being laid for the reopening of offices and the resurrection of entertainment venues. Congress enacted a bipartisan infrastructure bill and, as the nation’s most populous city, New York will be a major beneficiary of federal largesse.

New Yorkers are exceptionally resilient. We readily acknowledge that the appearance and subsequent spread of the omicron variant has slowed the nascent economic recovery. The city’s perennial budget challenges will prompt robust debate, as will questions over public safety and criminal justice. But we reject the idea that New York’s best days are behind it and instead make a concerted argument that its unique attributes still offer investors an opportunity to benefit from its recovery. We encourage you to explore the various topics in this report and suspect that, in doing so, you will share our confidence in the city’s future.


The future of NYC tourism

Michelle Laliberte, Thematic Investing Strategist, explains what the future holds for New York's tourism industry. How are you positioned? Connect with your UBS Financial Advisor to find out.


The future of sustainability in NYC

Amantia Muhedini, Sustainable & Impact Investing Strategist, explains what the future holds for New York's investments in sustainability. How are you positioned? Connect with your UBS Financial Advisor to find out.

A conversation with Michael Bloomberg

Watch the replay

How to invest

The future of New York looks a lot like the future of America. As the pandemic subsides, as it will eventually, it should lead to a revival in social interaction, a renewed appreciation for sustainable investment, and a resumption of capital investments in physical infrastructure.

Fixed income

Federal fiscal stimulus eased the pandemic-induced financial strain on the Big Apple budget, and credit spreads on the city’s municipal bonds have compressed in the past year. However, investors can still find reasonable values in the city’s taxable and tax-exempt bonds, many of which are focused on sustainable investments.

Equities

Real estate investment trusts (REITs) with a degree of concentration in the New York metropolitan area are among the ways investors can focus on the city’s commercial real estate revival. Exchange-traded funds, including fintech, smart mobility, and e-commerce, are a convenient way to invest in the transformation of the US—and New York—economy.

Alternatives

Private market investments are compelling components of a more aggressive portfolio. For investors who can tolerate a degree of illiquidity, private real estate investments or opportunity zone funds can offer high returns with some tax advantages.

Future of New York

Didn’t get enough? Dive deeper into each of the 12 topics.