Investor warns Mamdani’s housing agenda could drive capital out of New York City
TOI GLOBAL DESK | TOI GLOBAL | Nov 12, 2025, 19:50 IST
Investor warns Mamdani’s housing agenda could drive capital out of New York City
( Image credit : AP )
U.S. investor Barry Sternlicht warned that Mayor-elect Zohran Mamdani’s rent freeze and pro-tenant policies could discourage investment in New York City. Experts say the impact will depend on how Mamdani implements his housing agenda.
TL;DR
Real estate investor Barry Sternlicht says Mayor-elect Zohran Mamdani’s plan to expand rent freezes and public housing could deter investors and harm New York City’s housing market. Mamdani argues his policies will prioritise affordability and working-class residents.
United States real estate investor Barry Sternlicht warned in a recent CNBC interview that New York City may face severe consequences if Mayor-elect Zohran Mamdani follows through on his progressive housing proposals. Sternlicht stated that a rent freeze and expanded tenant protections could discourage developers, stall construction projects and force investors to move their capital elsewhere, ultimately weakening the city’s housing market.
Sternlicht, chairman and chief executive officer of Starwood Capital Group, expressed concern during an appearance on CNBC’s program Property Play. He argued that Mamdani’s proposed policies would create uncertainty for property owners and developers. According to Sternlicht, making all city projects valued at more than 100 million dollars subject to trade union oversight would increase construction costs to the point where development would be financially impractical.
“If tenants do not pay and landlords cannot evict, others will do the same,” Sternlicht said during the broadcast. He added that similar policy environments in other international cities had left property owners with deteriorating buildings because rents could not support upkeep. He asserted that Mumbai was a case in point and highlighted the old colonial period buildings which he thinks have been subjected to neglect because of the rigorous rent laws.
Mamdani, 34, triumphed in the mayoral election conducted early this month after a campaign based on affordable housing, public services, and working-class representation. Based on his campaign website and policy discourses, Mamdani is going to keep the rents for stabilized apartments, increase the amount of permanently affordable housing, and provide welfare services. His platform also consists of free public transport service and childcare for all, which will be supported by increased taxes on corporations and investment in public housing.
Mamdani cannot directly freeze the rents citywide in New York. Nevertheless, he has the power to appoint all the nine members of the Rent Guidelines Board, which is the forum that makes a decision on moth annual rent adjustments for almost one million rent-stabilized apartments. Housing policy analysts at New York University’s Furman Center note that a mayor can strongly influence city rent policy through these appointments.
Supporters say Mamdani’s plans are necessary to address the affordability crisis. A recent report prepared by the Community Service Society for 2024 mentions that more than a third of the total renters in New York City pay more than half of their earnings for housing. They claim that placing a cap on rent increments would be a great help to the weak and the families in need.
Forbes has reported personal financial disclosures that show Mamdani lives in a rented one-room apartment and is also without a car. Although he is eligible to move into the official mayoral residence at Gracie Mansion, he has not stated whether he plans to do so.
Mamdani has not publicly responded to Sternlicht’s comments. His transition team has stated in earlier briefings that the administration intends to balance affordability with sustainable development and responsible budgeting.
FAQs
Real estate investor Barry Sternlicht says Mayor-elect Zohran Mamdani’s plan to expand rent freezes and public housing could deter investors and harm New York City’s housing market. Mamdani argues his policies will prioritise affordability and working-class residents.
United States real estate investor Barry Sternlicht warned in a recent CNBC interview that New York City may face severe consequences if Mayor-elect Zohran Mamdani follows through on his progressive housing proposals. Sternlicht stated that a rent freeze and expanded tenant protections could discourage developers, stall construction projects and force investors to move their capital elsewhere, ultimately weakening the city’s housing market.
Sternlicht, chairman and chief executive officer of Starwood Capital Group, expressed concern during an appearance on CNBC’s program Property Play. He argued that Mamdani’s proposed policies would create uncertainty for property owners and developers. According to Sternlicht, making all city projects valued at more than 100 million dollars subject to trade union oversight would increase construction costs to the point where development would be financially impractical.
“If tenants do not pay and landlords cannot evict, others will do the same,” Sternlicht said during the broadcast. He added that similar policy environments in other international cities had left property owners with deteriorating buildings because rents could not support upkeep. He asserted that Mumbai was a case in point and highlighted the old colonial period buildings which he thinks have been subjected to neglect because of the rigorous rent laws.
Mamdani, 34, triumphed in the mayoral election conducted early this month after a campaign based on affordable housing, public services, and working-class representation. Based on his campaign website and policy discourses, Mamdani is going to keep the rents for stabilized apartments, increase the amount of permanently affordable housing, and provide welfare services. His platform also consists of free public transport service and childcare for all, which will be supported by increased taxes on corporations and investment in public housing.
Mamdani cannot directly freeze the rents citywide in New York. Nevertheless, he has the power to appoint all the nine members of the Rent Guidelines Board, which is the forum that makes a decision on moth annual rent adjustments for almost one million rent-stabilized apartments. Housing policy analysts at New York University’s Furman Center note that a mayor can strongly influence city rent policy through these appointments.
Supporters say Mamdani’s plans are necessary to address the affordability crisis. A recent report prepared by the Community Service Society for 2024 mentions that more than a third of the total renters in New York City pay more than half of their earnings for housing. They claim that placing a cap on rent increments would be a great help to the weak and the families in need.
Forbes has reported personal financial disclosures that show Mamdani lives in a rented one-room apartment and is also without a car. Although he is eligible to move into the official mayoral residence at Gracie Mansion, he has not stated whether he plans to do so.
Mamdani has not publicly responded to Sternlicht’s comments. His transition team has stated in earlier briefings that the administration intends to balance affordability with sustainable development and responsible budgeting.
FAQs
- What specific policies concern investors?Proposals to freeze rent, expand tenant protections and require union oversight for large development projects.
- Can Mamdani freeze rents on his own?No. He can only influence rent policy through appointments to the Rent Guidelines Board.
- What are the key elements of Mamdani’s housing platform?Rent freezes for stabilized apartments, expanded public housing, free bus service and universal childcare.
- Where does Mamdani currently live?In a small rental unit. He has not confirmed whether he will move into Gracie Mansion.