A Democratic Socialist for mayor. Three casinos. New rules for residential brokers. The demise of member deference.
2025 was a consequential year of political and policy shifts that will affect the real estate industry.
The big one, obviously, is that New York City will have a new mayor come January 1. Democratic Socialist Zohran Mamdani wasn’t the first or even second choice for many in the industry. In fact, many rallied behind former Gov. Andrew Cuomo ahead of the June primary, pouring millions of dollars into political action committees backing his campaign.
When Cuomo lost, some jumped ship to Mayor Eric Adams, hoping he could gain momentum after escaping federal corruption charges. But as polls showed him in fourth place (behind Republican Curtis Sliwa) and charges continued to pile up against his inner circle, he dropped out of the race in September.
Some in the industry have found hope in Mamdani’s commitment to building more housing and to exploring ways to reduce costs for landlords, including through potential property tax reform and alternative insurance methods. Still, owners are wary of this pledge to freeze rents for stabilized tenants for four years. That promise may be complicated by Adams’ last-minute appointments to the Rent Guidelines Board, though Mamdani will be able to replace all of the Adams appointees in 2027.
Two weeks before the primary, the Fairness in Apartment Rental Expenses, or FARE, Act went into effect. The law transformed how residential rental brokers work in the city, requiring whoever hires brokers to pay their commission. The Real Estate Board of New York filed a lawsuit challenging the law soon after its passage, alleging that it violates the First Amendment rights of brokers and landlords because it discourages the publishing of rental listings. The group has an appeal of a federal court’s dismissal of that claim pending before the Second Circuit.
In last year’s end-of-year newsletter, I said 2024 was a big year for Yimbys. This year also included some major wins for pro-housing folks. Voters approved four housing-related ballot measures, three of which allow certain projects to either bypass City Council approval or appeal rejections from the body. The changes do not completely kill member deference (the City Council tradition of voting on land-use issues according to the wishes of the local member), but weaken it considerably. The creation of an appeals board also elevates the role borough presidents play in zoning approvals.
This will be a dynamic we’ll be following closely, as well as the further rollout of City of Yes for Housing Opportunity, the federal government’s expansion of low-income housing tax credits and how all of these initiatives affect the volume of development.
Meanwhile, on their way out the door, City Council members approved several bills that some see as the Council’s way of reasserting its authority over housing policy following the approval of the ballot measures. The Council approved a package of housing bills that set new rules for the kinds of housing the city finances. One of the bills creates minimum wages for construction workers on certain projects.
The Council also approved the Community Opportunity to Purchase Act, or COPA, which gives city-approved nonprofits and joint ventures first dibs on buying distressed multifamily buildings. Landlord groups have warned that the measure will slow down deals and scare away potential investors.
The mayor has called the measures shortsighted, but it’s not clear if he will veto the bills.
If the bills become law, housing groups have warned that they will add millions of dollars to the Department of Housing Preservation and Development’s budget needs or will result in thousands of fewer housing units being built each year.
This year also saw the conclusion of the years-long competition for three downstate casino licenses. Community Advisory Committees eliminated half of the competitors, and after MGM Resorts dropped its bid to turn its Yonkers facility into a full-blown casino, only three proposals were left to vie for the up to three state licenses available. The state Gaming Commission agreed to issue licenses to Steve Cohen’s Metropolitan Park, Bally’s Golf Links at Ferry Point and Resorts World’s Queens Aqueduct.
We’ll be watching the progress of these projects — and the various promises made by the casino teams — over the next year.
What we’re thinking about: Speaking of things we’re watching: President Donald Trump met with Mayor-elect Zohran Mamdani in November, and the two highlighted multiple points of agreement, including the need for more housing. In fact, Trump said of the incoming mayor: “I think you’re going to have, hopefully, a really great mayor. I expect to be helping him, not hurting him.” Will this sentiment last? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Wild horses in Australia are called brumbies.
Programming note: The newsletter is taking a break from Dec. 24 until Jan. 5. Thank you for reading, and have a safe and happy holiday!
Elsewhere in New York…
— Council member Erik Bottcher announced on Monday that he will not run to replace Rep. Jerrold Nadler in the 12th Congressional District, City & State reports. Instead, he plans to run for Brad Hoylman-Sigal’s state Senate seat. (Hoylman-Sigal is leaving the state legislature to become Manhattan borough president.)
— Mayor-elect Zohran Mamdani on Tuesday tapped Lillian Bonsignore as the next commissioner of the Fire Department of New York. Bonsignore previously served as the FDNY’s chief of EMS operations.
— In a groundbreaking ceremony that was more of an announcement of when to expect an actual groundbreaking, city and state officials on Tuesday said demolition work on the future site of the Science Park and Research Campus (SPARC) in Kips Bay will begin in February 2026. Construction of the campus is slated to begin in 2027.
Closing Time
Residential: The top residential deal recorded Tuesday was $28.5 million for a 9,704-square-foot, sponsor-sale condominium at 50 United Nations Plaza in Turtle Bay. The Zeckendorf Marketing team had the listing.
Commercial: The top commercial deal recorded was $28 million for a 42,592-square-foot industrial property at 75 Onderdonk Avenue in Maspeth.
New to the Market: The highest price for a residential property hitting the market was $4 million for a 3,720-square-foot, two-family home at 308 Clermont Avenue in Fort Greene. Ari Harkov, Christian George Emanuel and Warner Lewis with Brown Harris Stevens have the listing.
Breaking Ground: The largest new building permit filed was for a proposed 20,185-square-foot, eight-story residential building at 3822 Sedgwick Avenue in Kingsbridge Heights. Nikolai Katz filed the permit on behalf of Sinai Gross.
— Matthew Elo