Having lost both Hudson River derbies this season, Jason Kreis's men - playing their first ever MLS campaign - set out on the quest to make it a case of third time lucky.
However, the Red Bulls - who won the first two derbies 2-1 and 3-1 respectively - opened the scoring on 22 minutes through Bradley Wright-Phillips. Kemar Lawrence drilled a low cross into the area, and Wright-Phillips converted from just outside the six-yard box.
It was one-way traffic in the first 15 minutes of the second period as City began to warm up, with David Villa firing wide just before the hour mark.
They proved to be costly misses, as Felipe Martins put the game to bed on 84 minutes to make it three wins from three against their Hudson River rivals.