IS NEW YORK CITY RECESSION PROOF?
With various issues affecting the global economy, investors are eyeing the possibility of a recession in the near future. For those interested in immigrant investor programs, keep the possibility of a recession in mind when making investment decisions.
The good news is that when a recession does occur – and the cyclical nature of the economy dictates that it will happen eventually – New York City may prove more resilient than other cities for investors.
New York City and the Great Recession
The Great Recession that started in 2008 put the U.S. in the worst economic straits suffered since the Great Depression of the 1930s. The collapse of Bear Stearns and Lehman Brothers, major financial institutions, were just a part of the many financial sector jobs lost during this time. However, as early as January 2010, there was evidence that New York City was bouncing back from the shocks of the Great Recession, while other parts of the country were still experiencing the recession’s severity.
The Current Scene
In 2019, New York City’s diverse economy appears robust. Since 2010, New York City has “enjoyed the highest rate of private job growth in the state, followed by Long Island and the Lower Hudson Valley, “ according to E. J. McMahon, the Research Director at the Empire Center for Public Policy.
Jobs in information technology are growing, with a growth rate of about 6 percent in 2018, according to Crain’s New York Business. Administrative jobs have also grown, as companies continue adding to their operations staff. Those numbers rose by 12,000 in 2018, to approximately 250,000 workers. An aging population means home health care is another rapidly growing field, with 7,000 more workers added for a total of roughly 200,000.
EB-5 Immigrant Investor Program and New York City
Under the EB-5 immigrant investor program, it is not necessary for the investor putting their funds into a Regional Center project to live in the area. Those investing in New York City projects, however, may do so not only because New York is considered more recession-proof than other locations, but because of all the city has to offer. Investors who enjoy fine dining, world-class shopping, theater, opera, ballet, and other cultural activities will find what meets their interests.
New York City has always been a haven for immigrants, and it is no coincidence that the Statue of Liberty graces New York Harbor. No matter the investor’s country of origin, they are likely to find a thriving community of fellow foreign nationals in New York City. This connection can make the transition of moving to a new country easier, and also allows the investor’s children to stay in touch with their cultural roots even as they attend American schools.
How Lightstone Can Help
Based in New York City, Lightstone is one of the largest privately-held real estate companies in the country. To date, our firm has raised more in excess of $400 million in EB-5 investments, creating almost 10,000 jobs nationwide in the process. Currently, we have more than $6 billion in assets under management and development. If you would like more information about U.S. immigrant investor programs, the EB-5 visa and why investing in New York City is a good choice, please fill out our contact form.