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News Topical, Digital Desk : New York's newly elected Mayor Zohran Mamdani is making headlines these days. He has vowed to fulfill his promises as the first thing he's done after winning. Meanwhile, billionaire investor and Chairman and CEO of Starwood Capital Group, Barry Sternlicht, has made a surprising claim.
In fact, the billionaire made a surprising claim in an interview with CNBC. Businessman Barry Sternlicht said that Mamdani's rent freeze plan would have negative consequences for New York City's housing market.
What is Barry Sternlicht's argument?
He has said that if Mamdani truly starts fulfilling his promises, New York will become Mumbai. Barry Sternlicht believes that Mamdani's socialist agenda will drive developers out of the city and severely impact real estate.
Barry Sternlicht argues that Mamdani's proposal, focused on freezing rents due to tenants' stagnant incomes, would trigger a chain reaction of rent non-payments and also undermine investor confidence in property ownership.
The industrialist explained why Democratic Party-ruled states are expensive.
He explained, citing the example that any project in New York that exceeds $100 million must negotiate with unions. This is very expensive, driving up housing prices. Other developers have tried to negotiate with unions, but in New York, they rule. He claimed this is why Democratic Party states in the US are so expensive.
Mamdani is busy fulfilling his promises
Since his victory, Mamdani has been working to fully implement his campaign promises. These promises include stabilizing rents in rent-stabilized apartments, providing free bus services, creating a universal, free childcare program for children between the ages of 6 months and 5 years, and opening five city-owned grocery stores, one in each borough.
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