New York Real Estate Billionaire Warns of Housing Crisis Under Mayor-Elect Mamdani's Policies

Mamdani secured victory in four of New York City's five boroughs.

Real estate billionaire Barry Sternlicht has issued a stark warning that New York City faces a "really tough time" under mayor-elect Zohran Mamdani, revealing he's contemplating relocating his team away from the metropolis. The CEO of Starwood Capital Group criticized New York's trade unions for the exorbitant real estate development and management costs, suggesting these challenges would intensify under the democratic socialist's administration.

Following his electoral triumph, Mamdani has pledged to immediately begin implementing his campaign promises. These include freezing rents in rent-stabilized apartments, providing complimentary bus services, establishing a universal free childcare program for children from 6 months to 5 years old, and opening five city-owned grocery stores across each borough.

In his CNBC interview, Sternlicht explained, "Every project over $100 million in New York must employ union workers, making it extremely expensive. This results in prohibitively costly housing."

Sternlicht's Starwood Capital Group maintains both commercial and residential holdings with joint ventures throughout New York.

The billionaire observed that while other developers have attempted negotiations with unions, "they govern New York, which is a primary reason blue states are so expensive and face such difficulties in increasing housing supply."

Addressing Mamdani's housing policies, Sternlicht remarked, "The far left becomes truly irrational, suggesting tenants needn't pay. If you can't evict non-paying tenants, neighboring residents discover this pattern and follow suit, potentially transforming New York City into Mumbai."

Sternlicht claimed Mamdani was addressing the city's fundamental issues. "We need housing expansion, which won't happen easily. Substantial government subsidies are necessary if they expect us to collaborate with unions. Unions must be more flexible regarding their work regulations and wage structures; otherwise, economic expansion becomes unfeasible," he stated.

Regarding public safety, Sternlicht expressed concern that conditions could worsen under Mamdani, who faced questions during his campaign about previous "Defund the Police" advocacy.

"If parents perceive streets as unsafe for their children, they'll withdraw them from schools and relocate. Should he defund police or fail to accord them deserved honor and prestige, the city faces severe challenges," he cautioned, adding that his company is already considering departing from its Midtown Manhattan office.

"Perhaps he'll learn from historical precedent. Maybe the million voters supporting him will realize socialism has universally failed throughout human history," he concluded.

Ugandan-born Mamdani – who will be the city's first Muslim mayor and first of South Asian descent – appealed to diverse voters across New York City's multicultural landscape, winning four of the five boroughs.