Introduction

The 2028 Summer Olympics, officially known as the Games of the XXXIV Olympiad, will be hosted by Los Angeles from July 14 to July 30, 2028, with the Paralympics following from August 22 to September 3. While Los Angeles will serve as the primary host city, the ripple effects of this global event are expected to influence real estate markets far beyond California, including New York City (NYC). Historically, the Olympics have catalyzed significant economic and urban transformations in host cities and, to a lesser extent, in major metropolitan areas with economic ties to the host. This article explores how the 2028 Olympics in Los Angeles could impact NYC’s real estate market, drawing on historical precedents, current market dynamics, and expert insights. From infrastructure investments to shifts in housing demand and commercial development, we will examine the potential opportunities and challenges for NYC’s real estate landscape.

Historical Context: Olympics and Real Estate

The Olympics have long been a catalyst for urban development and real estate market shifts in host cities. For example, the 1996 Atlanta Olympics spurred urban revitalization, leading to increased property values and gentrification in areas like downtown Atlanta. Similarly, the 2012 London Olympics transformed East London, boosting real estate development and property prices. However, these transformations often come with risks, such as market oversupply or post-event slumps, as seen in Athens after the 2004 Olympics.

While NYC is not hosting the 2028 Olympics, its failed bid for the 2012 Games provides valuable insight into how Olympic-related planning can influence urban development. The NYC2012 bid, spearheaded by then-Mayor Michael Bloomberg and real estate tycoon David Doctoroff, proposed significant infrastructure projects, including the West Side Stadium, the extension of the 7 train line, and developments in areas like Hudson Yards, Hunters Point South, and Flushing Meadows. Although NYC lost the bid to London, many of these projects were realized, reshaping the city’s landscape and driving real estate growth.

The 2028 Los Angeles Olympics could similarly influence NYC’s real estate market, albeit indirectly. As a global financial hub with strong economic ties to Los Angeles, NYC is likely to experience secondary effects from the Olympics, including increased demand for commercial and residential properties, infrastructure investments, and shifts in investor sentiment.

Economic Ties Between Los Angeles and New York City

New York City and Los Angeles are interconnected through their roles as global economic powerhouses. Both cities are hubs for industries such as finance, entertainment, technology, and construction, many of which will be directly involved in Olympic-related projects. The 2028 Olympics are expected to drive demand for services and labor in Los Angeles, potentially attracting workers and businesses from NYC. This migration could lead to increased demand for housing in NYC, particularly in neighborhoods with strong transit connections to airports and business districts.

Moreover, the Olympics are likely to enhance Los Angeles’ global visibility, which could indirectly benefit NYC’s real estate market. As Los Angeles attracts international investors and tourists, some of this capital may flow to NYC, a city known for its stable real estate market and global appeal. Investors seeking to diversify their portfolios may view NYC as a complementary market to Los Angeles, driving demand for both residential and commercial properties.

Potential Impacts on NYC’s Residential Real Estate

Short-Term Rental Demand

The 2028 Olympics are expected to draw tens of thousands of visitors to Los Angeles, including athletes, officials, media, and tourists. While most visitors will stay in or near Los Angeles, some may use NYC as a base for travel to the West Coast, given its status as a major transportation hub with direct flights to Los Angeles. This could lead to a temporary spike in demand for short-term rentals in NYC, particularly in Manhattan and Brooklyn, where proximity to airports like JFK and LaGuardia is a key advantage.

However, recent posts on X highlight challenges in NYC’s short-term rental market. A 2023 regulation effectively banned many short-term rentals like Airbnb, making it costlier for visitors to stay in the city. This could limit the potential for an Olympic-driven rental boom unless regulations are relaxed or new platforms emerge to meet demand.

Housing Prices and Demand

The Olympics could indirectly influence NYC’s housing prices by attracting workers and businesses involved in Olympic-related projects. Industries such as construction, event planning, and technology, which have a strong presence in NYC, may see increased activity as companies secure contracts for the 2028 Games. Workers relocating to or commuting from NYC could drive demand for housing, particularly in affordable neighborhoods like Queens, the Bronx, or Staten Island.

However, NYC’s housing market is already constrained by high prices and limited inventory. As of August 2025, the median home price in NYC is approximately $850,000, significantly higher than the national average. The influx of Olympic-related workers could exacerbate this shortage, pushing prices higher in certain neighborhoods. Conversely, if Los Angeles experiences a post-Olympic market correction, as seen in some past host cities, investors may redirect capital to NYC, further inflating prices.

Gentrification and Community Impacts

The 2028 Olympics could accelerate gentrification in NYC neighborhoods with strong economic ties to Los Angeles. Areas like Long Island City, Williamsburg, and Greenpoint, which were part of the NYC2012 bid, are already undergoing rapid development. Increased demand from Olympic-related workers or investors could drive up property values, potentially displacing long-term residents. Community advocates, such as Samuel Stein, have cautioned against prioritizing corporate-driven development over affordable housing, a concern that could resurface if Olympic-related investments prioritize luxury projects.

Commercial Real Estate Opportunities

Office Space Demand

The 2028 Olympics are expected to stimulate demand for office space in NYC, particularly for companies involved in Olympic-related projects. Firms in construction, technology, and media may expand their NYC operations to support the Games, leading to increased leasing activity in Manhattan’s business districts, such as Midtown and the Financial District. However, recent reports of office vacancies in NYC, exacerbated by remote work trends, suggest that any demand surge may be tempered by existing oversupply.

Retail and Hospitality

The hospitality sector in NYC could see a modest boost from Olympic-related tourism. Hotels near major transit hubs, such as Penn Station or Grand Central, may experience higher occupancy rates as visitors pass through NYC en route to Los Angeles. Similarly, retail businesses in tourist-heavy areas like Times Square or SoHo could benefit from increased foot traffic. However, a recent post on X noted a projected $4 billion drop in foreign tourism to NYC in 2025, suggesting that global economic or political factors could offset Olympic-driven gains.

Infrastructure Investments

While the 2028 Olympics will primarily drive infrastructure improvements in Los Angeles, NYC could benefit from federal or private investments tied to the Games. For example, Los Angeles has secured nearly $900 million in federal funding for transportation projects, including rail expansions. NYC, with its aging infrastructure, could see similar investments if Olympic-related economic growth prompts federal support for urban development. The extension of the 7 train line, a legacy of the NYC2012 bid, demonstrates how Olympic planning can accelerate infrastructure projects that enhance real estate values.

Risks and Challenges

Market Volatility

Historical data suggests that Olympic host cities often experience a post-event market correction. For example, Athens saw a housing market slump after the 2004 Olympics due to oversupply and economic downturns. While NYC is not the host city, it could face similar risks if investors overcommit to Olympic-related projects, leading to excess inventory. Developers in NYC must balance optimism about Olympic-driven demand with caution to avoid oversupply.

Housing Affordability

NYC’s housing affordability crisis is a significant concern. With over 50,000 apartments sitting vacant due to rent stabilization laws and renovation costs, the city struggles to meet housing demand. The Olympics could exacerbate this issue if demand for luxury units outpaces affordable housing development. Policymakers must prioritize affordable housing to mitigate the risk of displacement and ensure equitable growth.

Regulatory Constraints

NYC’s strict zoning and regulatory environment could limit the city’s ability to capitalize on Olympic-related opportunities. The short-term rental ban, for instance, restricts the city’s capacity to accommodate tourists, while rent stabilization laws hinder landlords’ ability to renovate and lease vacant units. Easing these regulations could help NYC maximize the economic benefits of the 2028 Olympics.

Lessons from NYC’s 2012 Olympic Bid

NYC’s failed 2012 Olympic bid offers valuable lessons for understanding the potential impact of the 2028 Olympics. The NYC2012 plan proposed transformative projects, such as the West Side Stadium and the redevelopment of Hudson Yards, which were realized despite the bid’s failure. These projects demonstrate the power of Olympic-driven planning to catalyze long-term urban development. However, they also highlight the risks of prioritizing corporate interests over community needs, as seen in the backlash from stakeholders like James Dolan, owner of Madison Square Garden.

The NYC2012 bid also accelerated infrastructure improvements, such as the 7 train extension, which enhanced connectivity and boosted property values in Hudson Yards. Similar investments in transportation or public amenities could amplify NYC’s real estate market in response to the 2028 Olympics, particularly if federal funding becomes available.

Strategies for Stakeholders

For Investors

Real estate investors in NYC should focus on neighborhoods with strong transit connections and economic ties to Los Angeles. Areas like Long Island City, with proximity to LaGuardia Airport, and Downtown Brooklyn, a hub for tech and media firms, are likely to see increased demand. Investors should also monitor federal infrastructure funding, as transportation improvements could enhance property values in underserved areas.

For Developers

Developers should prioritize mixed-use projects that balance luxury and affordable housing to meet diverse demand. Collaborating with city officials to streamline permitting and zoning processes could accelerate project timelines, ensuring developments are ready to capitalize on Olympic-related growth. Focusing on sustainable design and transit-oriented development will also align with long-term urban planning goals.

For Policymakers

City officials must address NYC’s housing affordability crisis to ensure equitable growth. Relaxing short-term rental regulations could boost tourism revenue, while reforming rent stabilization laws could unlock vacant units for renovation and leasing. Investing in public transit and infrastructure will enhance NYC’s competitiveness as a global city, amplifying the indirect benefits of the 2028 Olympics.

Conclusion

The 2028 Los Angeles Olympics will not directly transform NYC’s real estate market, but the event’s economic ripple effects could create significant opportunities and challenges. From increased demand for short-term rentals and housing to potential infrastructure investments, NYC stands to benefit as a secondary hub for Olympic-related activity. However, the city must navigate risks such as market volatility, gentrification, and regulatory constraints to ensure equitable growth. By learning from the legacy of the NYC2012 bid and prioritizing strategic planning, NYC can position itself to capitalize on the 2028 Olympics while addressing longstanding challenges in its real estate market. As the Games approach, stakeholders must stay informed and proactive to maximize the benefits of this global event.