Why real estate prices will surge despite Mamdani’s promises of affordability

Contrary to mayor-elect Zohran Mamdani’s promise to bring the price of rent and real estate down, agents I’ve spoken with say they expect prices to soar in the coming years.

“Inventory pushes prices down so if Mamdani puts a stop to development, as he has promised, prices will go up,” one real estate source who spoke on the condition of anonymity told me. “We are also going to see a lot more foreign investment, particularly from the Middle East.”

That combination of more money chasing fewer apartments will result in higher prices, so much so that the source is advising clients to hang on to their properties, even if they’re fleeing the city — or at least considering doing so — in the wake of Tuesday’s elections. Many are concerned about rising antisemitism and Mamdani’s views on Israel.

“Every Jewish client I have in New York is calling me, and my advice to them is hold tight,” the source said.

At the same time, restaurateurs, small business owners and executives tell me they see almost all investment halting in the short term.

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One restaurant owner I spoke with — who had been planning to expand one of his Brooklyn locations to a larger space — said he isn’t making any moves right now.

“Nobody will touch NYC until we know how bad it is,” he said of Mamdani’s policies. “There will be a great pause on investment.”

Meanwhile, in the Financial District, markets have taken a hit in part because of the malaise many in the world’s financial capital feel.

“The Mamdani win is adding to Wall Street anxiety and certainly not helping the mood post elections and in the midst of a government shutdown,” Wedbush Securities analyst Dan Ives told me.

While it’s too soon to say definitively how Mamdani’s policies will reshape the city, business leaders will be watching closely to see whether the mayor-elect moderates his positions or follows through on his campaign promises.

The real estate source quipped, “Investment is pausing but New York has dealt with worse than a 34-year old TikToker.”