- Wall Street Profits And Average Bonus Per Employee Comp Reached New Highs
- NYC Remains A Key Driver Of Higher End Housing Demand
- Wall Street Comp In NYC Is Almost 5X The Private Sector
The New York State Comptroller released their annual report on Wall Street profits and average bonus compensation for 2024. It showed the sector made a lot of money [gift link], the most on record in terms of profits and the average bonus per employee. In NYC, Wall Street accounts for about 4% of the jobs and about a quarter of all wages. Obviously, it’s a vital sector of the NYC housing economy.
Here’s my annual chart update that shows two key things:
- The record profit and bonus trends
- The charts confirm that I took band class in high school instead of art.
Wall Street is a critical sector of the NYC economy, with a small segment of jobs providing a significant portion of the wages. What I found most compelling was seen in the second chart, which showed how Wall Street employment – which has the highest wages – has continued to expand, reaching the highest level on record, while the private sector continued to fall. Robust compensation was reached despite the drop in NYC securities jobs, reflecting 18% of the national total, down from 33% 35 years ago. The record compensation fares well for the high-end segment of the housing market in terms of price trends for sellers but probably has little impact on driving more sales since I assume these employees would not purchase more than one home in NYC. The average Wall Street job, including bonus comp, was $471,365 in 2023 (Dept of Labor data lags a year), so bonus comp was nearly 50% of total compensation in 2024.
Cash Is Still King
The compensation estimates only apply to NYC employees and not the entire industry. The bonus comp only includes the current year and any deferred comp from previous years. The numbers don’t include compensation from stock options and deferred comp, where taxes haven’t been paid.
Since the financial crisis, deferred compensation (I refer to it as “golden handcuffs”) has been used more now than before.
Bonus Comp Coverage Silliness Has Left The Building
Until the financial crisis, it was standard fare to cover the March bonus results in the context of Wall Streeters running out to buy new Ferraris. I remember those heady days, overhearing two bonus recipients on the commute home extolling their latest acquisitions as one purchased a car for $250K with his AMEX card because he didn’t want to wait for his bonus check to clear. Apparently, it was a simpler time.
Because of the financial crisis and the subsequent creation of Dodd-Frank, there was a concerted effort to reduce “moral hazard” by reducing dependence on bonus comp.
Final Thoughts
Bonus comp for the NYC securities industry saw a record high in 2024, helping drive demand for higher-end real estate in 2025. It is important to note that the higher the purchase price segment of the market, the higher the probability of a cash buyer, and cash is a bypass mechanism for high mortgage rates. It will be interesting to see whether the high-end demand continues throughout 2025 if the tariff tantrums create significant damage to the economy. For now, the 2024 results are favorable for the NYC region’s higher-end housing market.
The Actual Final Thought – The NYC surge in bonus comp suggests that Elvis never actually left the building.
Did you miss the previous Housing Notes?
Housing Notes Reads
- GSE Reform Resurfaces: Challenges and Implications [JPMorgan]
- What happens to mortgage rates if conservatorship ends for Freddie Mac and Fannie Mae? [Fast Company]
- Fannie Mae and Freddie Mac Are Shaken Up by Their Regulator [NY Times]
Market Reports
- Elliman Report: Manhattan, Brooklyn & Queens Rentals 2-2025 [Miller Samuel]
- Elliman Report: Florida New Signed Contracts 2-2025 [Miller Samuel]
- Elliman Report: New York New Signed Contracts 2-2025 [Miller Samuel]
