> Does this not have more to do with desirability?

Not really. NYC population still hasn't fully recovered to the pre-covid peak: https://fred.stlouisfed.org/series/NYPOP

NYC is losing it's share of the global finance jobs as firms shift staffing to other, more desirable locations: https://pix11.com/news/local-news/nyc-job-market-loses-thous...

NYC rent being unaffordable is due to legislation that keeps apartments off of the market due to not being financially viable to repair to habitable standards in addition to legislation overly empowering local groups to block new construction.