US real estate billionaire Barry Sternlicht has caused a stir by warning that New York City could “turn into Mumbai” under the newly elected Mayor Zohran Mamdani, whose socialist-leaning agenda features a plan to freeze rents and expand tenant protections.
Sternlicht, Chairman and CEO of Starwood Capital Group, voiced his concerns during an interview with CNBC’s Property Play, stressing that Mamdani’s policies would create economic unpredictability, drive investors out, and destabilise the city’s housing market.
What has Sternlicht warned?
According to Sternlicht, Mamdani’s policy to make all projects in New York City worth over $100 million go through powerful trade unions, would make construction prohibitively expensive.
He argued that a rent freeze, inspired by stagnating incomes, would lead to widespread non-payment, as tenants protected from eviction could simply refuse to pay, triggering a ripple effect across city neighbourhoods.
“If tenants don’t pay, and you can’t evict them, others follow suit. Ultimately, you’re basically going to turn New York City into Mumbai,” Sternlicht said.
“If you look at Mumbai, you find these magnificent colonial buildings that are rotting because their owners can’t make a return on investment,” he added.
What were Mamdani’s electoral policies?
Mamdani, New York City’s youngest mayor at 34, was propelled to victory largely on the support of younger voters and renters eager for affordable living.
His platform includes a freeze on rents for stabilised apartments, tripling the city’s supply of permanently affordable homes, higher corporate taxes, public funding for housing, and expanded social benefits such as free bus service and universal childcare.
While Mamdani does not have the direct power to set or freeze rents by himself, he can choose all the members of the Rent Guidelines Board, which is the group responsible for deciding rent increases for rent-stabilized apartments.
By appointing board members who support his policies, Mamdani can influence the board’s decisions and effectively control rent regulations.
Mamdani’s rented accommodation
A true commoner, Mamdani himself lives in a one-room rented accommodation in the city. He doesn’t own a car and has a net worth of about ₹1.71 crore as of 2025, according to Forbes.
Post his electoral victory, he may move to the Gracie Mansion, is in Carl Schurz Park on the Upper East Side of Manhattan, however Mamdani hasn’t confirmed it.
