New York will turn into Mumbai under Mamdani, billionaire warns
What's the story
Real estate billionaire Barry Sternlicht has warned that New York City could face a "really tough time" under the leadership of mayor-elect Zohran Mamdani. Sternlicht, CEO of Starwood Capital Group, also blamed the city's trade unions for high development and management costs during an interview with CNBC. He said these issues could worsen under Mamdani's administration.
Policy critique
Sternlicht warns of potential rent non-payment crisis
Sternlicht said, "The far left gets really nuts and says the tenants don't have to pay. Well, you can't kick them out if they don't pay." He added, "So the neighbor finds out the neighbor isn't paying, and they don't pay, and the next guy doesn't pay, and then you're basically going to turn New York City into Mumbai." He also warned that public safety might decline under Mamdani, who has previously called for "Defund the Police."
Relocation plans
Sternlicht's company considering moving office out of Manhattan
Sternlicht's company, which has assets in both residential and commercial spaces, is even considering moving its office out of Midtown Manhattan due to these fears. He also expressed doubts about Mamdani's ability to learn from history, saying, "Maybe the million people who voted for him won't realize that socialism has never worked anywhere on the planet Earth, ever."
Campaign promises
Mamdani promises to freeze rents in rent-stabilized apartments
Mamdani has promised to freeze rents in rent-stabilized apartments, provide free bus services, create a universal childcare program, and open city-owned grocery stores. However, Sternlicht believes these measures will require government subsidies and union cooperation to increase housing supply. "The unions have to be more accommodating on their work laws and the wages and everything else; otherwise, you can't add economically," he said.