This is true and has been going for most of the recovery post 2010.

However with the pandemic and a significant amount of people moving out of the city, coupled with retail closures and bankruptcies hopefully this rent gouging will come to a natural end.

The NYC real estate market is going to shed quite a substantial amount of value over the next 3-5 years and very likely prices will drop considerably. Perhaps 30-50% especially at the high end. The lower end will be a bit insulated because of demand and also because the prices there haven't seen as much of a run-up as the higher end apartments.