Here's a funny NYT article on the housing bust in Harlem.
In general, places that had strong fundamental value have not been hit so hard by the bust as those where the developers and transplants were betting on the idea that their supreme coolness would transform a shithole into a metropolis.
So, New York hasn't been nearly as devastated as Phoenix or Las Vegas because it's fucking New York City. But overhyping and its subsequent bursting is a fractal phenomenon that you can see at any level of zooming in or out. Thus, even within sturdy New York, the Upper East Side wasn't as overhyped and hasn't suffered so bad of a hangover as Harlem -- because Harlem has never had much going for it, while the UES has.
Some of the dopes interviewed by the NYT counter that, no, really, Harlem is still on its way to becoming the Next Big Thing -- after all, look at all the hip new shopping districts we've built! Well, swell, except those are merely a reflection of the irrational exuberance of the bubble years. How many technology start-ups did you found? Or medical research labs? Or anything productive? Harlem is lucky to have Columbia University nearby, which actually does make stuff happen, or it would look even worse.