In 2025, rental brokers were handed a new playbook and New York City elected a Democratic Socialist.
Voters signed off on changes that could transform a political dynamic that has guided rezonings for decades. A fatal shooting at a Midtown office tower raised questions about how best to protect tenants.
These and other stories had a major impact on real estate this year, and will continue to influence the industry in the years ahead.
Here are some of 2025’s most consequential New York real estate stories:
1) Shooting at 345 Park Avenue
The tragic shooting of four people at Rudin Management’s 345 Park Avenue deeply affected friends, family and colleagues of the victims, and ramped up discussions about office security in the city.
On July 27, Shane Devon Tamura walked into the office tower with an assault rifle and killed three people in the lobby: Wesley LePatner, chief executive officer of Blackstone Real Estate Income Trust; NYPD officer Didarul Islam; and Aland Etienne, a security guard.
He then took the elevator to Rudin’s offices on the 33rd floor, thinking it was where the National Football Association is headquartered. There, he shot and killed Julia Hyman, an associate at Rudin, before turning the gun on himself.
The deaths left the real estate community reeling and sparked conversations about potential ways to prevent future incidents and the limitations of buildings already equipped with the best technology and security practices. A month after the shootings, Reps. Jerrold Nadler and Dan Goldman called on Congress to pass gun safety legislation that, among other things, bans assault weapons and enacts universal background checks. (The gun used by Tamura was illegal to possess in New York but was purchased lawfully in Nevada.)
The shootings also inspired the City Council to pass legislation setting minimum wages for security guards and increasing training requirements.
2) Mamdani wins mayoral race
Real estate professionals donated millions of dollars to political action committees backing former Gov. Andrew Cuomo’s run for mayor. When Zohran Mamdani defeated him in the primary (along with several other candidates vying for the job), some in the industry hoped Mayor Eric Adams could gain enough momentum ahead of the general election, though such optimism didn’t last long as the mayor trailed in the polls.
During his campaign, the Democratic Socialist outlined several priorities that rankled landlords and the broader business community, including a promise to freeze rents on stabilized apartments for four years and to push the state to raise corporate and income taxes on the state’s wealthiest.
Still, Mamdani has also said that he is committed to reforming the city’s property tax system and finding other ways to reduce costs for owners.
3) Mortgage fraud saga
Federal agencies ramped up their mortgage fraud investigations this year, extending an already tangled web of sponsors, attorneys, title agents and others. These parties were accused of perpetrating schemes that often involved inflated financials or sales prices to secure larger loans from various lenders.
This year saw the sentencing of some key players, including Moshe Silber, Fred Schulman, Baruch Drillman and Eli Puretz. These cases involved properties and players outside New York but had larger implications for New York City-based firms. Fannie Mae blacklisted some title firms that were mentioned in fraud cases, though it reinstated Madison Title as an approved vendor in June.
4) FARE Act goes into effect
The Fairness in Apartment Rental Expenses, or FARE Act, went into effect on June 11. The new law requires whoever hires a rental broker to pay said broker’s fee. A broker who publishes a listing, however, is assumed to have been hired by the property’s owner. In its lawsuit challenging the law, the Real Estate Board of New York alleged that this provision violates the First Amendment because it discourages a specific type of speech (listings). REBNY has appealed the case to the Second Circuit and is waiting on a decision.
Public rental listings have dropped and median rent prices have increased since the law was implemented, but it is tricky to disentangle the impact of the law from other factors that influence such shifts, such as lack of supply and high demand.
5) Housing approval overhaul
Mayor Eric Adams is leaving office with a legacy complicated by scandal. He was the first sitting mayor in recent history to face criminal charges, which were dropped at the behest of President Donald Trump’s administration in what was seen (including by federal prosecutors who resigned over it) as a trading of favors between the president and mayor.
But the Adams administration also shepherded major changes that will allow more housing to be built throughout the city. City of Yes for Housing Opportunity was approved last year, and this year, the mayor’s Charter Revision Commission placed four proposals on the ballot that would allow certain housing projects to either sidestep City Council approval or would allow the City Council’s rejection of a project to be appealed.
The measures, approved by voters in November, shorten some project approval timelines and weaken the tradition of member deference, in which Council members voted on land use issues according to the wishes of the local member. To what extent these changes lead to more housing remains to be seen, and will rely on many factors, including capital available for housing and the relationship between the next mayor and City Council leaders.
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