BlackRock CEO Larry Fink Says New York Is Losing Its Edge as 'Other States Are More Attractive Now' — Housing Costs, Crime and Education Have People Rattled

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New York City has always sold itself on momentum — the sense that even when it stumbles, it still moves faster than everywhere else.

But in April, during a conversation hosted by the Economic Club of New York, BlackRock CEO Larry Fink suggested the city may finally be losing some of that edge. Bloomberg TV posted a clip of the event, and his comments were unusually direct.

"The potential of the city to even have a brighter future, you can feel it," Fink said in the clip, "but are we losing it?" Inside BlackRock, he noted a shift: more employees asking whether they can relocate to other states because they're worried about "the cost of housing here, the crime, the education, all the things that are facing us."

Then came the line that set the tone. "And right now," he said, "there are other states, quite frankly, that are more attractive now."

When the head of an $11.6 trillion asset manager headquartered in Manhattan expresses that kind of concern, it isn't a throwaway remark. And Fink wasn't talking as a detached executive.

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He moved to New York in the mid-1970s, when the city was grappling with a fiscal crisis, and remembers the determination it took to rebuild. This time, he questioned whether the city is showing that same resolve. "I believed that my taxes were used to help build out the city," he said. "I don't feel that way anymore."

Some of the issues he highlighted are clearly visible in the numbers. New York has lost nearly 40% of its drugstores over the past decade, according to The Center for an Urban Future's annual "State of the Chains" report, with about 10% of those closures happening in 2024 alone.

Walgreens, CVS and Rite Aid have all downsized, citing theft and rising operational costs. Foot Locker announced it would move its headquarters to another state to cut expenses. And a growing list of companies have shifted satellite offices or expansions to lower-cost regions.

Residents feel the pressure too. According to the Citizens Budget Commission's Straight From New Yorkers 2025 survey, 76% of New Yorkers say affordability is a "very important" reason they'd consider leaving the city, with safety close behind. Those concerns map directly onto the issues Fink raised: housing costs, crime and education remain central pain points.

Housing, in particular, continues to define the debate. With some of the highest rents in the country and homeownership increasingly out of reach, New Yorkers are weighing whether the city still offers enough upside to justify the costs. For employers, that reality complicates recruitment and retention when other states offer lower taxes, more space and a more predictable quality of life.

New York has bounced back from difficult periods before — the 1970s collapse, the aftermath of 9/11, the pandemic. But Fink's remarks captured a shift in the competitive landscape. Other cities are now courting talent with cleaner streets, cheaper housing and school systems that feel more stable. The idea that New York doesn't have to fight for its status is no longer a given.

For investors, though, housing remains essential no matter where people choose to live. Real estate doesn't stop being valuable because one market becomes too expensive; it just redirects demand. And investors no longer need to live in the same city as a property to benefit from it.

Arrived — a platform backed by Jeff Bezos, who may not be a New Yorker but does back ambitious ideas — allows investors to buy fractional shares of rental properties for as little as $100. It gives everyday investors a way to access rental income and potential long-term appreciation without needing a mortgage or dealing with tenants, offering a practical entry point into a market that continues to grow even when cities shift.

Fink's warning wasn't an obituary for New York. It was a reminder that the fundamentals matter: safety, affordability, schools, cleanliness and basic confidence in city services. New York still has strengths other places can't replicate, but as he implied, those can fade — and even a global powerhouse has to earn its allure when other states are looking more attractive by the day.

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This article BlackRock CEO Larry Fink Says New York Is Losing Its Edge as 'Other States Are More Attractive Now' — Housing Costs, Crime and Education Have People Rattled originally appeared on Benzinga.com