See explanation below.
Explanation
You need create a dynamic group based on the city attribute. You then need to assign a license to the group.
User accounts with the city attribute set to 'New York will automatically be added to the group. Anyone who is added to the group will automatically be assigned the license that is assigned to the group.
1. Go to the Azure Active Directory admin center.
2. Select Azure Active Directory then select Groups.
3. Click on the New Group link.
4. Give the group a name such as New York Users.
5. Select Users as the membership type.
6. Select 'Add dynamic query'.
7. Select 'City' in the Property drop-down box.
8. Select 'Equals' in the Operator drop-down box.
9. Enter 'New York' as the Value. You should see the following text in the Expression box: user.city -eq "New York"
10. Click Save to create the group.
11. In the Groups list, select the new group to open the properties page for the group.
12. Select 'Licenses'.
13. Select the '+ Assignments' link.
14. Tick the box to select the license.
15. Click the Save button to save the changes.
References:
https://docs.microsoft.com/en-us/azure/active-directory/users-groups-roles/groups-dynamic-membership
https://docs.microsoft.com/en-us/azure/active-directory/users-groups-roles/licensing-groups-assign