The recent Democratic primary win by Zohran Mamdani, a 33-year-old democratic socialist and state assemblyman from Queens, has stirred anxiety across New York City’s luxury real estate market. His sweeping victory last month has sparked a cautious response among affluent buyers, with some already pausing or reconsidering multimillion-dollar property purchases.
Jay Batra, a real estate broker in the city, told CNN that two of his clients halted their high-end Manhattan purchases, citing discomfort with the city’s political direction. “The more traction Mamdani gained, it went from a little concern to ‘wow, where is the city going?’” he shared.
Mamdani has proposed a 2% tax on New Yorkers earning over $1 million and intends to implement housing reforms such as rent freezes, public housing expansion, and increased landlord oversight. While these policies are not guaranteed to become law, their very proposal has spooked segments of the city’s wealthy population.
Uncertainty Spurs Talk of Leaving
Within private Facebook groups frequented by Upper East Side residents, discussions about possibly leaving the city have emerged following Mamdani’s win. Though anecdotal, the buzz reflects a broader discomfort among some wealthy New Yorkers. Real estate agent Frances Katzen confirmed this sentiment, noting a noticeable uptick in calls from residents living in $4 million+ apartments who are suddenly considering selling.
One of Katzen’s clients even sent a message after the election showing a picture of their newborn and asked, “Where should we go, and how much would it cost?”
Despite this growing unease, housing data offers mixed signals. Redfin data shows a slight dip in pending sales during the week following the June 24 primary, though fewer deals fell through compared to turbulent weeks earlier this year. Still, the median asking rent in NYC reached $3,397 in Q1 2025—a 5.6% rise from last year—further amplifying tensions in a city already grappling with affordability.
Real Estate Investors Reconsider
Buyers who had been eyeing rental investments are also growing cautious. Batra said some clients were looking into small apartment buildings for rental income but are now pausing, wary of the proposed rent freeze.
Mamdani’s ambitious housing agenda adds further uncertainty for investors already sensitive to tax hikes and regulatory shifts. Though the general election is months away, the ripple effect of the primary is already being felt.
Florida Gains as NYC Wavers
While New York faces hesitation, Florida’s real estate market is preparing for a potential influx of disillusioned New Yorkers. Samantha Curry of Douglas Elliman in Palm Beach has already received inquiries from NYC clients eager to act before others follow suit. One buyer, previously indecisive, is now accelerating his plans, citing Mamdani’s win as the reason.
Florida’s real estate sector saw a boom during the pandemic, growing over 8% between 2020 and 2024. Although the pace has slowed due to rising insurance costs and climate concerns, developers like Isaac Toledano are seeing renewed interest. “It’s looking like we’re going to have a very, very busy summer,” he noted, pointing to a sudden surge in buyer engagement post-primary.
