After taking his oath on a Bible, once owned by President Franklin Roosevelt, the first Democrat to take on the role of mayor for 12 years gave an inspiring speech.
"Today we commit to a new progressive direction in New York. And that same progressive impulse has written our city's history. It's in our DNA" he told at guests, who had braved freezing temperatures for the outside ceremony.
In a sign of change, the down-to-earth mayor arrived for his own ceremony by subway, accompanied by his wife Chirlane McKray and their children Chiara and Dante.
In his first speech as Mayor of New York, de Blasio called on New Yorkers to work together to improve living conditions for everyone living there, saying he wanted to create "a city of five boroughs - all created equal".
The new mayor renewed his pledge to extending paid sick leave law, and tackling hospital closures, as well as providing affordable housing.
Other key points of his campaign, including providing better education, were raised too: "We will not wait, we will do it now" he said, as he talked of plans to ask the rich to pay a little more in taxes so the city can have universal pre-kindergarten.
Which those earning between $500,000 and $1 million would see tax increase of $973 a year, with the extra revenue going directly to school programs.
The 52-year-old was elected by a record margin and is considered as the face for the city's progressive movement.
Bill de Blasio thanked the former mayor Bloomberg, saying: "Let's acknowledge the incredible commitment of our mayor ... To say the least, you led our city through some extremely difficult times".
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