Trump ally and fellow real estate tycoon warns Zohran Mamdani will destroy NYC's housing market: 'That's not affordability, that's insanity'
The reality of a Zohran Mamdani win in the mayoral election is settling in - and New Yorkers are setting out.
Real estate experts are warning that Mamdani, the Democratic candidate in the upcoming election for the city's mayor, could destroy the housing market if he wins.
The policies at the core of Mamdani's campaign are largely unpopular with wealthy and upper-middle class residents.
Mamdani has pledged to increase taxes on high-earners in an effort to make New York more affordable. In doing so, he is pushing those with high incomes out of the city and into lower-tax areas.
Grant Cardone, real estate investor and close ally of President Donald Trump, told the Daily Mail: 'I love New York. It's iconic. But if the city keeps attacking success, it'll end up with empty skyscrapers and full U-Hauls heading South. You can't legislate prosperity - you've got to produce it.'
He believes Mamdani could demolish the city's potential: 'If this guy gets his way, New York's going to turn into a museum - all history, no future. You can't build wealth when you punish the people creating it.'
Cardone says signs that the market will crumble are already showing: 'I'm already seeing investors pull out. You can't demonize the people providing housing and expect them to stick around. You don't fix affordability by scaring off developers, you fix it by building more.'
He continued: 'Every time a politician says they're "protecting tenants" but crushes landlords and developers, they destroy the very supply that keeps housing alive. That's not affordability — that's insanity.'
As left-wing mayoral candidate Zohran Mamdani inches closer to city hall, New Yorkers are planning their escape routes
The policies at the core of Mamdani's campaign are largely unpopular with wealthy and upper-middle class New Yorkers
Real estate investor and close ally of President Donald Trump Grant Cardone warned that Mamdani's mayorship could be detrimental to the future of New York
Meanwhile, realtors in areas from surrounding suburbs all the way to Palm Beach and even the Caribbean say they are meeting with buyers who say they are house hunting to escape Mamdani's progressive policies.
According to realtors, New York City's loss is Westchester's gain.
Westchester, a leafy suburb in the Hudson Valley, is located just north of the city, with an easy commute into Manhattan.
'We are absolutely seeing a correlation between Zohran Mamdani's surprise win in the Democratic primary and an uptick in real estate interest in Westchester,' Zach and Heather Harrison, real estate agents in the area, noted.
'Since the summer, nearly every buyer from the city we have taken out to see homes in Westchester has mentioned the mayoral election as one of the drivers for shopping in the suburbs,' they told Realtor.com.
Since Mamdani won the Democratic primary in June, sales going into contract in Westchester County are up 15 percent compared to the same period last year, according to The Harrison Team.
Local agents are already calling it the 'Mamdani effect.'
'The current environment is giving buyers and investors a reason to reconsider their next real estate move, and turning to Westchester as the main attraction,' say the Harrisons.
Mamdani has campaigned on making housing in New York City more affordable for working-class communities and immigrants
In comparison to New York City, Westchester offers more space, lower crime rates, and often lower effective taxes.
For those who work in the city, the commuter rail (Metro-North) still connects Westchester to New York City - but with remote work, many people do not need to be in the city daily anyway.
Another attractive quality is the highly-rated public schools Westchester towns have to offer, which are a big draw for families.
Some realtors are seeing the upside of Mamdani's effect on New York City's housing market.
'Following Mamdani's election victory, we've noticed a significant trend among New York landlords and homeowners, with many either listing their properties or considering a sale,' observed New York luxury realtor Jay Batra.
'As residents continue to relocate to states like Florida and Texas, the market is shifting. Despite this, NYC is here to stay. This is an excellent opportunity for buyers to capitalize on this transitional period and get great deals in the market,' he told the Daily Mail.
Palm Beach is another spot seeing excess interest from New Yorkers.
Real estate agents in the South Florida neighborhood say there has been an influx in affluent New Yorkers looking to purchase in the town.
Wealthy New Yorkers who want to avoid Mamdani's taxes on high-earners are exploring moving to Westchester County
In light of Mamdani's campaign promise to tax the wealthy, rich New Yorkers are eyeing up properties in Palm Beach, Florida
City-dwellers are fleeing to the place Trump calls home in order to escape what the President himself has described as the 'communist' regime of 33-year-old Mamdani.
'Most of my New York clients tell me it's about lifestyle first,' Johnny DelPrete, an agent with The Exclusive Group at Douglas Elliman in Palm Beach County, told Realtor.com.
'The weather, the beaches, the ability to be outside all year. Of course, taxes play a role, too. But, it's really about the quality of life they get here without giving up easy access to New York.'
What Mamdani is proposing for New York City aims to make housing more affordable for working-class and immigrant communities who have been hit hard by decades of rising rents and limited affordable housing options.
This plan, however, will not do much for the upper echelon.
Meanwhile, Palm Beach is not cheap, but you get more bang for your buck.
The median home price in the area sits at just over $2 million. While this is down 2 percent from last year, the median price has skyrocketed since Trump took office in 2017, when the figure was around $900,000.
Palm Beach has become synonymous with wealth, luxury, elegance, and political activity.
Palm Beach is not cheap, but you get more bang for your buck
'They're not really price-sensitive,' DelPrete says of his New York buyers. 'If they see something they love, they move quickly and are willing to pay for it. In multiple-offer situations, they're usually aggressive because they don't want to miss out.'
According to DelPrete, New Yorkers are eager and prepared to act: 'They're decisive, they're fast, and they come prepared.'
'They're used to competing in a tough market, so they don't hesitate when the right home comes along. Locals may take more time, but New Yorkers know how to strike when they see the right opportunity.'
Back in July, shortly after Mamdani won the primary, buyers started pulling out of sales in the city.
'Two weeks ago, I had a couple of buyers In the $3 million, $4 million and $5 million price point range - one I was selling a building to - who are no longer interested in buying,' Batra told the Daily Mail at the time. 'They don't want to hear about Mamdani and the rent freeze he is proposing.'
A rent freeze like the one proposed would essentially put a cap on the income landlords can generate from their properties for a set period of time.
Batra says clients he's worked with for years have long invested their millions in New York real estate, growing a portfolio with multiple apartments. Now, they want out.
'They are very discouraged by everything that's going on in the news, but the consensus overall is that Mamdani is not the direction they want the city to go in,' he said. 'And this agenda is making people pause and think, "Is this the place they want to park their money?"'
