They make up just a sliver of New York’s population, but households earning over $500,000 a year hold outsized sway in the housing market. From 2018 to 2023, their buying patterns revealed where wealth concentrated, how preferences shifted, and which neighborhoods saw the ripple effects. While most focused on primary residences, their reach extended to second homes and investment properties—quietly influencing prices, availability, and even the character of entire zip codes.
Overview of High-Income Homebuyers in New York
Households earning over $500,000 annually are among the highest-income groups in the state. Many work in industries like finance, law, medicine, or tech, especially in the New York City area. Because of their financial resources, these buyers can afford some of the priciest real estate.
It’s important to note that NYC is predominantly a city of renters – only about 30% of households in NYC are homeowners. However, those homeowners tend to be in higher income brackets. For prospective buyers in NYC, the market is very expensive: the median sale price of NYC homes in 2023 was around $764,000. High earners well exceed that median, often buying properties worth $1 million and up. Statewide (outside of NYC), home prices are lower – the median home price for New York State excluding NYC was about $250,000 in 2019, rising to roughly $325,000 by 2023.
Market Shifts During 2018-2023
This period saw significant shifts. In the late 2010s (2018–2019), the housing market was relatively stable with gradually rising prices. The early 2020s brought dramatic changes due to the COVID-19 pandemic: many wealthy New Yorkers left the city in 2020, driving up demand in suburban and rural areas, then some returned in 2021–2022. Record-low interest rates in 2020–2021 fueled a homebuying boom, while higher rates in 2022–2023 cooled the market.
Types of Properties Being Purchased
Luxury and Large Homes
High-income buyers in New York often purchase luxury properties. This can mean spacious suburban houses with big yards, high-end apartments in the city with doormen and amenities, or historic townhouses in desirable neighborhoods.
In suburban Westchester County (just north of NYC), the median sale price for a home was about $630,000 in 2019, and it jumped to $750,000 by 2021. Many of these buyers from 2020–2021 were coming from NYC – in some Westchester towns, over half of the home purchases in 2021 were by people moving out from the city. These wealthy buyers often bid above asking price; in early 2022, about 40% of luxury listings in Westchester sold for more than the asking price.
In New York City, high-income buyers tend to focus on luxury condos and co-ops (especially in Manhattan) and upscale brownstones or townhouses. During 2021, as the city recovered from the worst of the pandemic, Manhattan saw record sales volume. In the fourth quarter of 2021, over 3,400 apartments were sold – up 79% from the same period in 2020 – marking the busiest fourth quarter in Manhattan since at least the 1980s. The average sale price in Manhattan by late 2021 was around $1.9 million, and the median was about $1.13 million.
Upsizing vs. Downsizing
Most wealthy buyers between 2018 and 2023 were upsizing or upgrading their homes. National survey data supports this trend: about 56% of home sellers who bought another home “traded up” to a more expensive home, while roughly 32% bought a less expensive home (downsizing), and the rest made a similar lateral move.
In New York, the upsizing trend was especially pronounced during 2020–2021. For instance, many young high-earning families living in city apartments decided to buy houses in the suburbs to gain more space when remote work and stay-at-home life became the norm.
Downsizing did occur for some high-income households, particularly empty nesters and older retirees. Some wealthy longtime homeowners in the suburbs sold their large houses and moved into smaller luxury condos or to retirement-friendly locales. An interesting pattern: a number of high-income sellers who did not buy a new home moved into properties they already owned – for example, from a city apartment to a second home upstate that they already had.
Owner-Occupied vs. Investment Purchases
High earners predominantly buy homes for themselves, but some buy additional properties purely as investments (rental properties). In New York City, it’s common for investors (including wealthy individuals) to buy condos to rent out or hold as an asset.
Nationwide, investor activity hit a record in 2021 – about 18% of U.S. home sales in Q4 2021 were to investors. Still, for New York’s $500k+ earners, their major transactions during 2018–2023 were typically aimed at securing a better primary residence or an additional vacation home, rather than solely flipping houses or building rental empires.
Upsizing, Downsizing, or Additional Homes?
Upsizing (Buying Larger Homes)
Upsizing was very common in this period, especially during 2020–2022. Many high-income families in New York City chose to “trade up” for more square footage. The pandemic intensified this desire: people wanted home offices, bigger yards, or more personal space.
Manhattan residents who could afford it started looking for houses in the suburbs of Westchester, Connecticut, New Jersey, or on Long Island. This led to a surge in luxury suburban sales. Westchester County saw a 41.5% jump in luxury home sales (priced over $2 million) in 2021. Even within NYC, those who stayed sought bigger homes: there was a notable increase in sales of larger apartments and townhouses in 2021. Manhattan and Brooklyn townhouse sales in late 2021 were up 75% year-over-year as buyers gravitated to properties with more space and private amenities.
Downsizing (Moving to Smaller Homes)
While less common, some high-income households did downsize. Typically these were older homeowners or couples whose children had grown up. They might sell a large suburban house and buy a luxury condominium either in Manhattan or in a smaller town with lower maintenance.
Overall, downsizing was a secondary trend; the strong market conditions between 2018 and 2023 encouraged more upsizing, since many could afford to buy bigger due to low interest rates in 2020–2021 and strong stock market gains pre-2022. Downsizers were a minority, but they benefited from selling into a seller’s market and then often paid cash for their smaller new home.
Additional Homes (Second/Vacation Homes)
A significant number of high-income New Yorkers bought additional homes during this period, especially in 2020–2021. The ability to work remotely led many affluent city dwellers to seek country getaways or beach houses.
Nationally, demand for second-home mortgages jumped to record highs in 2020 and 2021. According to Redfin, the number of second-home mortgage originations in 2021 was about 65% higher than pre-pandemic levels. Many of those buying second homes were high earners (often Gen X age).
New York’s wealthy were a big part of this trend: the Hamptons saw an explosion of sales in mid-2020 as New Yorkers fled the city for more space. In the Hamptons, home sales doubled in the fourth quarter of 2020 compared to the year before, reaching 803 sales in that quarter – the highest in 15 years. Over half of those Hamptons sales were for over $1 million, and the median price hit a record $1.4 million.
Likewise, rural regions like the Hudson Valley and Catskills upstate saw unprecedented demand. One analysis called the pandemic price increases in the Hudson Valley “unheard of in U.S. history,” as bidding wars broke out for country homes. Small towns like Hudson (in Columbia County) and Kingston (in Ulster County) experienced the largest influx of new residents in the entire country in 2020, largely from people moving out of NYC.
By 2022–2023, the vacation home trend cooled off somewhat. Companies began calling workers back to the office part-time, so some people spent less time at their second homes. Additionally, new lending rules in 2022 increased fees for second-home mortgages, and higher interest rates made buying an extra property more expensive. In 2023, vacation-home mortgage demand was down 40% from 2022 and about 65% below the 2021 peak.
In summary, from 2018 to 2023 high earners were primarily buying larger or additional homes rather than downsizing. Upsizing to gain space (especially mid-pandemic) was a defining theme, and purchasing second homes for leisure or investment was also popular until rising costs tempered that trend.
Regional Differences in New York
New York City (NYC)
The city is a unique market. Even among high-income buyers, New York City’s home prices are a challenge. From 2018 to 2019, Manhattan’s high-end market was somewhat soft; a glut of new luxury condos had led to slower price growth in the late 2010s.
By 2020 and 2021, we saw rollercoaster changes. In 2020, when COVID-19 hit, many wealthy Manhattanites temporarily left the city. Rental vacancy in NYC hit a record high in 2021 (over 4.5%) as people moved out. According to IRS data, 35% more people left NYC in 2020–2021 than in the previous two years – a significant number of them were high earners who now could work remotely.
This exodus was evident in the property market: Manhattan sales and prices dipped in 2020. But the decline was short-lived. By late 2021, many affluent households returned as the city reopened, and buyers rushed back into the NYC real estate market to take advantage of low interest rates and slightly lower prices. The result: 2021 became a record-breaking year for Manhattan real estate, with roughly $30 billion in sales, the highest annual sales volume ever recorded. The resurgence included strong activity in the luxury segment – signed contracts for Manhattan homes $4 million and up hit their second-highest level ever in 2021. By early 2022, the median sale price in NYC reached a record high around $782,000 (citywide median), before cooling slightly.
NYC Boroughs and Neighborhoods
Within NYC, high-income buyers concentrated in Manhattan (neighborhoods like the Upper East Side, Tribeca, Chelsea, etc.), parts of Brooklyn (Brooklyn Heights, Park Slope, Williamsburg’s luxury waterfront condos, etc.), and select areas of Queens. Brooklyn in particular saw tremendous growth over the past decade: its luxury market blossomed in the 2010s and continued into the 2020s.
By 2022 and 2023, NYC’s high-end market moderated a bit due to rising interest rates and a shaky stock market. Many affluent buyers’ wealth is tied to stocks, and 2022’s market downturn and higher mortgage rates made some pause their buying plans. Luxury home sales dipped in 2022 – for example, in Long Island’s Nassau County (home to many affluent NYC suburbs), luxury sales were down 65% year-over-year in late 2022 as the post-pandemic frenzy cooled.
Interestingly, a lot of high-end transactions in the city became all-cash deals. In Manhattan, nearly 70% of home sales in the fourth quarter of 2023 were all-cash (no mortgage) – up from about 55% cash sales in 2022. This suggests that wealthy buyers who remained in the market in 2023 were extremely affluent.
In summary, NYC proper saw high-income buyers first pull back (2020) then come roaring back (2021) and finally face a more balanced market (2022–2023). The city’s prices did rise overall from 2018 to 2023, with growth about +16% in median price from pre-pandemic to late 2023.
New York City Suburbs
The suburbs around NYC became extremely popular with high earners during 2018–2023, especially in the pandemic era. These areas include Westchester County and Rockland County to the north of the city, Long Island’s Nassau and Suffolk Counties (including the Hamptons).
Westchester and Hudson Valley: Once the pandemic hit, Westchester saw soaring demand. Families with $500k+ incomes who might have stayed in the city decided they wanted a house with a yard. By 2021 the median sale price in Westchester jumped to $750,000 (up from $630k in 2019). Inventory was scarce (30% fewer homes on the market in early 2022 vs a year prior), yet luxury sales (> $2M) were up ~20% in that timeframe. Many listings got multiple offers above asking. Towns in Westchester reported that 50% or more of their homebuyers were coming from New York City in 2021.
Further north in the Hudson Valley, a similar story played out in 2020–2021. Hudson Valley median prices rose far faster than the national average during 2020–2022 – for example, Ulster County’s median price more than doubled from 2019 to 2022 in some reports. Real estate agents described frenzied bidding wars on properties that previously might have sat on the market.
By late 2022 and 2023, as interest rates rose, the suburban and upstate markets started to cool. The frenzy of bidding wars calmed down. Even so, prices generally remained higher than pre-pandemic, and inventory stayed relatively low.
The Hamptons and Long Island
The Hamptons deserves special mention: traditionally a summer vacation market for New York’s rich and famous, during 2020 it became an escape for year-round living. In Q4 2020, Hamptons home sales were up 100% (doubled) from Q4 2019, reaching the highest quarterly sales in 15 years. The median price in the Hamptons hit $1.4 million (54% higher than a year before) in late 2020. The result was a billion-dollar boom – nearly $1 billion of property sold in just three months of mid-2020 in the Hamptons.
After the initial rush, the Hamptons market began to stabilize. By 2022, as people spent a bit less time at the beach and more back in the city, sales volumes normalized (though remained strong historically). Overall, the Hamptons remained one of the most popular regions for high-income buyers throughout 2018–2023.
Other Upstate Areas
Outside the NYC metro and Hudson Valley, there are cities like Albany, Syracuse, Rochester, and Buffalo. In these areas, home prices are much lower and households earning $500k+ are very rare. They did see home price increases (as did most of the country), and even some influx of remote workers from bigger cities. But nothing as dramatic as the downstate region.
Some high-income individuals in upstate regions did buy vacation properties locally (like lake houses in the Finger Lakes or ski chalets near Lake Placid), but those are relatively niche. The main story for upstate was that they benefited indirectly from the pandemic boom – prices rose as buyers from New York City or out-of-state showed interest – but high-income buyers in upstate were often newcomers rather than local $500k earners.
Comparison: 2018–2023 vs. 2008–2017
Impact of 2008 Financial Crisis
The housing market in New York took a hit around 2008–2009, but not as severely as some other parts of the country. Manhattan’s high-end market was somewhat insulated initially, and the outer boroughs saw prices drop first. By 2010 home values in NYC had been pushed to what would now seem “bargain” levels. For example, the median NYC sale price in early 2010 was around $384,000 – much lower than today.
Starting around 2013, the market recovered strongly. From 2010 to 2019, NYC’s median home price nearly doubled (from $384k to $675k), reflecting a robust rebound. This run-up was partly driven by an influx of luxury developments in the 2010s, especially in Manhattan, which catered to affluent buyers (including international buyers).
Market Saturation by Mid-2010s
By around 2015–2017, the NYC luxury market showed signs of over-supply. Developers had built many high-priced condos, and not all were selling quickly. Data from 2016–2017 show that the ultra-luxury segment stalled – the average Manhattan sale price hovered around $1 million and median around $800k, essentially flat in the late 2010s. High-income buyers had plenty of choice and often negotiated prices down on expensive units.
Interest Rates and Economy
The 2008–2017 period generally had low mortgage interest rates (especially after 2009 when the Federal Reserve cut rates to near zero). By 2016–2017, mortgage rates were still quite low (around 4% or less for a 30-year loan). This helped high-income buyers afford expensive purchases, but since rates stayed relatively steady, there wasn’t the kind of rush we saw in 2021 (when rates hit ~2.5%).
Economically, 2008–2017 saw a slow recovery in jobs and incomes. By the mid-2010s, the stock market was rising significantly, which boosted the wealth of the rich. However, nothing in that decade matched the sudden pandemic-driven relocation wave of 2020. The earlier changes were more incremental – a steady rise in homeownership and prices among the wealthy, rather than a sharp jump.
Price Appreciation Comparison
Looking at pure price stats: From 2008 to 2017, New York’s overall home prices recovered from the crash and grew modestly. Outside NYC, the median NY State home price was about $185k in 2008, dipped to $175k in 2009, then climbed back to ~$234k by 2017. That’s roughly a 26% increase over the whole decade (not accounting for inflation).
In contrast, from 2018 to 2023, the median outside NYC jumped from $240k to $325k – about a 35% increase in just five years. So the recent period had faster growth, largely due to the 2020–2021 surge.
Conclusion
Between 2018 and 2023, high-income households in New York (those earning $500k or more) largely drove a high-end housing boom, especially during the pandemic years. They bought a mix of property types: luxury Manhattan condos, spacious suburban houses, and plush vacation homes. The typical trend was upsizing – moving to bigger or more expensive residences – and in many cases buying additional homes (second houses in resort areas).
The pandemic triggered an unprecedented relocation pattern, with wealthy New Yorkers significantly increasing demand in suburbs and rural leisure markets. Regions like the Hudson Valley and the Hamptons saw record spikes in sales and prices due to this influx. After the peak of 2020–2021, the market began stabilizing: 2022–2023 brought higher interest rates, which cooled activity, but high earners continued to transact, often using cash and still keeping prices relatively high due to limited supply.
Compared to the previous decade, the 2018–2023 period was more erratic but also saw faster short-term growth. Earlier (2008–2017) was a story of recovery and steady climb, whereas the recent years had extreme highs (and a brief low in 2020 for cities) in a short span. Regional differences became more pronounced in the recent period: New York City’s price growth was modest (after already high levels), while smaller markets in New York State experienced tremendous surges as they became newfound havens for the affluent.
The 2018–2023 era will be remembered as a time when New York’s richest homeowners significantly reshaped real estate patterns across the state. While the frenzied activity of the pandemic years has subsided, the geographic dispersal of wealth and the increased importance of space and amenities in homebuying decisions appear to be lasting legacies of this period.
- NYC home prices nearly doubled in the 2010s. What do the 2020s hold? – Curbed NY
- Statewide Residential Median Sale Price – NY State Dept. of Taxation and Finance
- Spotlight: New York City’s Homeowner Housing Market – Office of the NYC Comptroller
- Manhattan housing market makes record rebound to close out 2021 – 6sqft
- Home Sales in the Hamptons Finished 2020 at a 15-Year High – Mansion Global
- The Hudson Valley housing market exploded in 2020. What happens now? – Times Union
- Westchester’s Real Estate Market Stays Hot, and Will Only Get Hotter – Westchester Magazine
- Luxury-Home Sales Sink 38%, the Biggest Decline on Record – Redfin
- Deep Dive: New York’s Housing Market – Dodge Construction Network
- Demand For Vacation-Home Mortgages Fell 40% in 2023 – Redfin
- Manhattan Trophy-Home Sales Boomed This Year – Mansion Global
- Manhattan real estate reaches record-breaking $30 billion in sales – CNBC
- Hudson Valley Home Prices Reach New Heights Amid Tight Market – Chronogram
- Investors Buy Record Share of Homes in 2021 – National Low Income Housing Coalition
- Hamptons Sees Billion-Dollar Real Estate Boom – InsideHook
- Luxury Home Markets North of NYC Report Record Sale Gains for 2021 – Mann Publications
- Sellers: Results from the Zillow Consumer Housing Trends Report 2024 – Zillow Research
- The Top One Percent Income Levels By State – Financial Samurai
