I Lego N.Y. by Christoph Niemann (all ages)
I have to say this book is as much fun for adults as it is for kids. From Starbucks to taxi cabs, Niemann recreates the things we love and loathe about NYC with a sense of humor and creativity.
Tar Beach by Faith Ringgold (ages 4-8)
What's a tar beach, you ask? I've lived in NYC for 10 years, yet I didn't know the answer until reading Ringgold's delightful story. A tar beach refers to a building rooftop, and it's where the story's main character, Cassie Lightfoot, spends many a summer night escaping the heat with her family.
Ellen Schmidt is a mother of one in Manhattan. She blogs at Baby Meets City. In her Big Apple Books section, from which the above is adapted, she reviews children's literature based in the five boroughs of NYC -- both classic titles and the as-yet undiscovered. Let her know your faves!
Also see: Kid Lit Landmarks in NYC