Investment Bank UBS published a report today that said New York City’s economic decline is likely only in the innings and it is likely to only get worse. UBS said the unemployment rate may reach 10.5%, a level not seen since the mid-1970s.
The city’s residential real estate market and employment has held held up better than most areas. Home prices, which declined 14% as of November since their peak, may fall another 20 to 25% “if not more,” according to the report.
In December, NYC unemployment rate was 7.4%, up from 5.1% a year earlier. Financial services accounted for 13% of city employment in 2007.