New York City real estate poured millions into preventing a progressive takeover at City Hall. It didn’t work. This week, Assemblymember Zohran Mamdani — the 33-year-old Democratic Socialist and vocal critic of the industry — won the Democratic primary for mayor in a stunning upset over Andrew Cuomo.
Mamdani’s rise is the latest chapter in a growing trend: big, liberal cities moving left — and real estate getting caught in the crosshairs.
The industry has learned to adapt. Just two years ago in Chicago, Brandon Johnson defied the odds to become mayor on a progressive platform. And despite initial panic, the city’s real estate industry found its footing. Johnson’s marquee policy — a transfer tax hike on high-value sales — was defeated in a citywide referendum. A proposed $300 million property tax increase was similarly squashed. Business groups organized early and effectively, creating pressure points outside City Hall that ultimately limited the mayor’s reach. While investment has slowed and political instability lingers, real estate has minimized the damage.
In Boston, Michelle Wu has pushed an aggressive pro-resident tax agenda, attempting (and so far failing) to raise commercial property taxes while touting rent control and rebates. If successful this time around, the harm would fall on commercial real estate landlords already struggling to make their properties economically viable, creating fears of an “urban doom loop” in the city. However Wu, like Johnson, has also prioritized housing production and permit streamlining in ways the industry can support.
Back in NYC, Mamdani has made plenty of enemies with proposals like a four-year rent freeze and $100 billion in publicly funded housing. But his platform isn’t uniformly hostile to real estate. He’s indicated support for upzoning wealthy neighborhoods, overhauling the city’s burdensome ULURP process and reforming property taxes. On some issues, like parking mandates and voucher efficiency, he may even accelerate changes the industry has long wanted. He’s also already walked back past calls to defund the police and voiced support for private-sector development — especially if it aligns with affordability and sustainability goals.
Still, a big fear is capital flight. With no rent regulation, no income tax and a very different political climate, South Florida brokers are anticipating another migration wave.
The next test comes in November. Mamdani hasn’t clinched the mayoralty yet, and Cuomo appears poised to still run as an independent. Real estate could even pivot back to Eric Adams, once an industry favorite. Either way, the industry has proved that it can adapt.
Although it may not seem like it, there was plenty of other real estate news this week. Compass sued Zillow over “anticompetitive tactics,” a former Vornado exec was charged with embezzling millions and development teams submitted their New York casino bids.
Compass sues Zillow, alleging “anticompetitive tactics” with listing policies
Compass is taking Zillow to court, alleging the listings giant is using its market power to suppress competition with new listing policies that target private and office-exclusive listings. Compass claims Zillow’s April rule change, set to take effect June 30, amounts to an “exclusionary policy” that unfairly punishes listings not immediately syndicated to the MLS and Zillow.
Former Vornado exec charged with embezzling millions from REIT
A former Vornado Realty Trust executive has been charged with embezzling more than $9.5 million from the firm over a 14-year period. Jared Solomon, once a vice president at the REIT and part of its high-profile leasing team, was indicted in December on charges of wire fraud and aggravated identity theft.
Cards on the table: New York clinches casino bids
For the last three years, development teams have tried to sell their casino proposals to New Yorkers, touting the scores of jobs that would be created and, in some cases, transformative visions for long-vacant sites. Some developers have added housing to their plans or whipped up creative ways to ply the surrounding community, hoping such commitments will sweeten the pot. Now, at least eight teams are expected to submit applications ahead of the Friday deadline for one of three of the downstate casino licenses up for grabs.
Toll Brothers in contract to buy Brandon Miller’s former Chelsea property for $53M
Toll Brothers is under contract to buy a long-stalled Chelsea development site once owned by Brandon Miller, almost a year after his tragic death, for $53 million. The site, near the High Line, had been tied up for years following the death of the developer, whose original office project never materialized.
DeSantis signs amended condo safety bills into law on anniversary of Surfside collapse
On the fourth anniversary of the Surfside condo collapse, Florida Gov. Ron DeSantis signed two amended condo safety bills into law aimed at easing compliance with post-tragedy regulations. House Bill 913 extends the deadline for structural integrity reserve studies (SIRS) to the end of the year and allows some associations to temporarily pause or reduce reserve contributions if recent inspections have already been completed. A companion bill, HB 393, ties eligibility for My Safe Florida Condo grants to compliance with inspection mandates.
Is the other shoe dropping for Scott Everett’s S2 Capital?
Holes are forming in Scott Everett’s shield against the multifamily distress that’s consumed other syndicators. His Dallas-based firm S2 Capital is facing foreclosure on an Arlington apartment complex. S2 appears to have defaulted on a $36 million mortgage provided by CBRE for Preslee Apartments, at 2504 Ivy Brook Court.
Case Study 2.0 aims for swift Palisades, Altadena rebuild minus “cookie-cutter” look
Crest Real Estate launched a program that enlists over 40 architecture firms to speed up wildfire recovery in the Pacific Palisades, Altadena and Malibu. Case Study 2.0, inspired by the original post-WWII Case Study housing initiative, aims to provide pre-approved, design-forward home plans tailored for rebuilding.
Microsoft-linked buyer is assembling a $350M Palm Beach portfolio
A buyer linked to Microsoft is assembling a sprawling portfolio of Palm Beach properties, in a series of deals that will likely total more than $350 million. Billionaire Charles Simonyi, the early Microsoft employee credited with creating Word and Excel, is likely the buyer, sources told TRD.
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Zohran Mamdani pulls off Democratic nomination upset for NYC mayor
Bracing for Mamdani: Can real estate survive crushing defeat?
NYC real estate can look to Chicago as a blueprint for grappling with Mamdani
