Zohran Mamdani is New York City’s next mayor.
Just before 9:40 p.m., the Associated Press called the race for the 34-year-old Democratic nominee. At Mamdani’s rally at the Brooklyn Paramount theater, the crowd erupted into cheers and attendees embraced.
As a Democratic Socialist who promised to freeze rents and go after bad landlords, Mamdani was not the first choice of many in the real estate industry.
Mamdani has promised to freeze rents for stabilized apartments for four years, an action that would need to be carried out by the city’s nine-member Rent Guidelines Board. Mayor Eric Adams has reportedly indicated that he will replace six members before leaving office, potentially stacking the board with members who will not sign off on a rent freeze.
Landlord groups have argued that freezing the rents will further erode the quality of the city’s rent-stabilized housing. Board-approved rent increases are among the few ways owners can raise rents in stabilized housing after the 2019 rent law eliminated other avenues. In response to these concerns, Mamdani has said he will push for property tax reform — something other mayors have tried and failed to do — and will take other actions to support struggling owners.
Some affordable housing developers were heartened by his plans to build hundreds of thousands of units of housing and his acknowledgement that the private sector plays an important role in addressing the city’s housing shortage.
Mamdani said he wants to build 200,000 housing units, funded by the city issuing $70 billion in bonds, on top of the $30 billion it has already committed as part of the city’s 10-year capital plan. That would require state-level action to increase the city’s borrowing capacity.
Much of the mayoral race focused on housing and affordability. Though he repeatedly said the city needs to reduce housing project timelines, Mamdani waited until election day to reveal his position on the controversial housing ballot measures.
“I voted yes because we are facing an unprecedented housing crisis and we have to acknowledge the urgent need to build more housing and deliver immediate relief to New Yorkers across the five boroughs,” he told WNYC’s Brian Lehrer on Tuesday, after he voted.
Ultimately, determining what a Mamdani administration will mean for the real estate industry will rely on who he hires and what projects and policies he prioritizes. And, at least for rent-stabilized owners, whether he is able to deliver on his promise to freeze rents for four years.