Tech Booms in New York, Driving Jobs and Skyrocketing Rents
The tech industry in New York City is booming, creating over 200,000 jobs and reshaping neighborhoods — but it is also driving rents to record highs.
A quarter-century ago, tech startups in the city were rare. Today, professional group Tech:NYC counts more than 2,000 companies, from giants like Google, Meta, Microsoft, and Amazon to smaller startups. Google alone occupies six buildings across Midtown South, an area stretching from Chelsea to SoHo, once called “Silicon Alley.”
Despite setbacks like Amazon’s 2019 withdrawal from Queens and the rise of remote work, the sector has not only recovered but thrived. Last year, more than 700,000 square meters of office space were leased in Midtown South, a record, with many companies expanding into southern Manhattan and Brooklyn.
Tech salaries are among the highest in the city, attracting a young, skilled workforce. “Everything is here — finance, healthcare, education — and proximity to clients is a huge advantage,” says cybersecurity CEO Ian Amit.
But this growth comes at a cost. Median Manhattan rents have risen 40% over the past decade, now averaging around $4,500 per month. City leaders, including newly elected mayor Zohran Mamdani, have responded with proposals to freeze rents on nearly one million apartments.
Julie Samuels, president of Tech:NYC, notes the dilemma: “We need to let people who grew up here stay while enabling newcomers to start businesses and careers — and that’s not easy.”
While tech is often blamed for rising costs, experts like Amit argue finance has traditionally driven income inequality in New York. Tech, he says, fits into an already expensive ecosystem.
