Barry Sternlicht: New York Billionaire Warns of Mumbai-like Future Under Mamdani
Billionaire real estate mogul Barry Sternlicht has sparked controversy by suggesting that Mayor Zohran Mamdani's proposed rent-freeze and housing policies could transform New York City into Mumbai. Sternlicht, a prominent figure in the real estate industry, expressed concerns about the potential impact on housing affordability and investor confidence.
Barry SternlichtZohran MamdaniNew York CityReal EstateHousing PoliciesReal Estate MumbaiNov 12, 2025
Sternlicht, the founder, chairman, and CEO of Starwood Capital Group, expressed his concerns in an interview with CNBC Property Play. He argued that Mamdani's influence in America's richest city could lead to rent defaults and drive investors away. Mamdani, a democratic socialist, has been advocating for policies aimed at taxing the rich, which have not been well-received by many of New York City's affluent residents.
One of the key issues Sternlicht highlighted is the cost of union labor in New York. 'Over $100 million, every project in New York has to go union, and it’s super expensive. It leads to extremely expensive housing,' he said. 'And other developers have tried to cut deals with the unions, but they rule New York, and that’s one of the key reasons the blue states are so expensive and they’re so difficult to add supply of housing to,' Sternlicht added.
The billionaire also raised concerns about the potential for a domino effect if tenants find out their neighbors are not paying rent. 'And then the neighbor finds out the neighbor isn’t paying, and they don’t pay … and then you’re basically going to turn New York City into Mumbai,' he stated. Sternlicht’s comments have gone viral, sparking a broader debate about housing affordability and the influence of investors in the city.
Sternlicht’s company, Starwood Capital Group, is a global private investment firm he co-founded in 1991. He also heads Starwood Property Trust, one of the largest publicly traded real estate investment trusts in the United States. Born in New York City in 1960 and raised in Connecticut, Sternlicht graduated magna cum laude from Brown University and later earned an MBA from Harvard Business School.
His father was a Polish Holocaust survivor, and his mother was a stockbroker and biology teacher. Over the years, Sternlicht has built an empire across real estate, hospitality, and finance, managing assets worth more than US$100 billion. He is credited with launching the W Hotels brand and transforming Starwood into a global powerhouse.
While Sternlicht’s comments have drawn criticism, they also highlight the ongoing tension between affordable housing policies and the interests of real estate investors. The future of New York City’s housing market remains a topic of intense discussion and debate.
Frequently Asked Questions
Who is Barry Sternlicht?
Barry Sternlicht is a billionaire investor and real estate mogul. He is the founder, chairman, and CEO of Starwood Capital Group, and he also heads Starwood Property Trust, one of the largest publicly traded real estate investment trusts in the US.
What are Zohran Mamdani's proposed policies?
Zohran Mamdani, a democratic socialist and the newly elected mayor of New York City, has proposed policies aimed at taxing the rich and implementing rent-freeze measures to address housing affordability issues.
Why did Sternlicht compare New York City to Mumbai?
Sternlicht expressed concerns that Mayor Mamdani's proposed rent-freeze and housing policies could lead to rent defaults and drive investors away, potentially turning New York City into a scenario similar to Mumbai, where housing affordability and maintenance are significant issues.
What is the impact of union labor on New York City's housing market?
Sternlicht highlighted that the cost of union labor in New York City is a major factor contributing to the high cost of housing. He argued that this makes it difficult to add new housing supply, leading to increased housing prices.
What is Starwood Capital Group?
Starwood Capital Group is a global private investment firm co-founded by Barry Sternlicht in 1991. It manages assets worth more than US$100 billion and is involved in real estate, hospitality, and finance.
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