Economics

New York City Suburbs Lure Millennials With Luxury Digs, Ax-Throwing Bars

Yonkers and New Rochelle have their eyes on young professionals priced out of Manhattan and Brooklyn.

There are about 6,300 rental units in the pipeline in New Rochelle, N.Y.

Photographer: Rob Stephenson for Bloomberg Businessweek

A literal arms race is heating up between two suburbs north of Manhattan. Ax-throwing bars are in the works at New Rochelle and Yonkers, both of which see the edgy pubs as a means to attract millennials away from New York City. The two biggest towns in Westchester County are betting on luring affluent urbanites who like their bars and bagels close but are sick of feeling poor in the Big Apple. If they succeed in getting the Gothamites to move, however, they risk driving rents too high for locals.

New Rochelle and Yonkers are selling location—a half-hour train ride from Midtown Manhattan, with rents at a fraction of the cost—and preparing for an influx of city exiles by building apartment towers outfitted with luxury amenities such as dog-washing stations and rooftop fire pits. The way they see it, every New York City rent increase means more potential Westchester residents.