New York real estate leaders have prepared for changes from Zohran Mamdani’s plans on housing costs and supply. They now aim to talk with the new mayor-elect as he pushes to cap rents and boost building projects across the city.
Owners worry that holding rents steady in controlled apartments would cut funds for upkeep and upgrades. This could also slow interest from investors in those buildings.
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David Dworkin leads the National Housing Conference, a group that backs affordable housing interests in New York and beyond. He said the best step for the mayor-elect is to meet developers and managers of low-cost homes. Ask them what support they need to build more.
Our group has active members in New York and key experts on local housing. We can link them up, Dworkin noted.
Progressive Democrat Mamdani, age 34, won last week’s mayoral race. Young voters, new residents, first-timers, and renters fueled his win, per NBC News polls. His ideas to cut living expenses drew them in. New York remains the nation’s largest and priciest city.
The mayor lacks direct say on rent levels. Yet Mamdani’s team picks members for the Rent Guidelines Board. That panel decides rent caps and could vote for freezes, as stated on its site. The mayor also influences zoning for fresh housing and other structures. Plus, he controls the city budget, per the government website.
Past Mayor Bill de Blasio tried a rent freeze on stabilized units. Outgoing Mayor Eric Adams ended it.
Kenny Burgos heads the New York Apartment Association. It speaks for most affordable housing owners and builders in the city. He doubts the board will back Mamdani’s freeze on those rents. Even if Mamdani swaps some of the nine board seats.
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Board members review data year after year. The numbers show costs climbing. Burgos said over 200,000 low-cost units face near bankruptcy from higher expenses. A rent freeze would finish them off, he warned.
A POSSIBLE WAY AHEAD
A 2025 study by the current board showed net income for pre-1974 affordable buildings dropped 9% from 2020 to 2023 in the city. Outside Manhattan, the fall topped 25%.
With data proving these homes struggle amid rising bills, a rent freeze makes no sense, Burgos said.
The board did not reply right away to questions.
Top New York firms that fund affordable projects include Blackstone (BX.N), Brookfield Properties (BN.TO), Pinnacle Realty of New York, and SL Green Realty (SLG.N), per the association. Blackstone and SL Green spokespeople passed on comments. Pinnacle and Brookfield did not respond yet.
Some experts spot hope for owners and the new mayor.
Mamdani stressed that rent caps and affordability won’t harm landlords, said Jesse Batus. He serves as senior VP for development at Community Builders. The firm runs about 1,000 affordable units in the city. It plans over 800 more.
Costs keep going up, we know that. But the mayor-elect won’t favor some over others, Batus added.
In his win speech, Mamdani promised to freeze rents for over 2 million stabilized tenants. His team did not comment yet.
David Funk directs the American Real Estate Society, a group of scholars and pros. He fears Mamdani’s rules will hurt appeal for investments. Not just in affordable housing, but other business properties too. Slimmer profits could follow.
Rent controls often shrink funding in the past, Funk said.
OWNERS SEEK TEAMWORK
Many in real estate want to partner with Mamdani on his plans.
James Whelan heads the Real Estate Board of New York. His group stands ready to aid the next mayor. They aim to tackle housing costs and city issues.
Paul Rahimian started Parkview Financial, a lender for commercial properties. In an email, he said he’d like to meet Mamdani. They could plan ways to ease living costs for New Yorkers.
The industry feels uneasy. But Mamdani has talked with them. He shows support for growth, said Kathryn Wylde. She leads the Partnership for New York City. Its members cover banks, private funds, and law offices on Wall Street.
He pushes to build plenty of homes. That offers some comfort.