Barry Sternlicht Warns of NYC Rent Freeze: Could New York Become Mumbai?
Prominent U.S. real estate investor Barry Sternlicht criticizes New York City's proposed rent freeze, warning it could lead to a housing market collapse similar to Mumbai's overburdened system.
Real EstateRent FreezeNew York CityBarry SternlichtZohran MamdaniReal Estate MumbaiNov 12, 2025
Sternlicht’s criticism centers on Mamdani’s proposal to freeze rents across the city because tenants’ incomes have stagnated. He warned that this could trigger a chain reaction of non-payments by tenants, withdrawal of investment by property owners and developers, and erosion of confidence in property ownership.
He also pointed out that New York already faces high construction costs, strong trade union demands, and heavy regulatory burdens, which make new housing supply expensive and difficult to bring online. According to Sternlicht, layering a rent freeze on top of these challenges may create untenable conditions for developers.
Talking to CNBC about Mamdani's housing policy, Sternlicht said, “The far left gets really nuts and says the tenants don't have to pay. Well, you can't kick them out if they don't pay. So the neighbor finds out the neighbor isn't paying, and they don't pay, and the next guy doesn't pay, and then you're basically going to turn New York City into Mumbai,” he said.
In his view, the root problem is not simply tenants’ affordability but a shortage of housing supply and the structural cost pressures within the city. He said that unless major subsidies or reforms are introduced, these supply constraints will persist. He also expressed concern about public safety, suggesting that if residents feel unsafe, they may leave the city, further weakening its prospects.
Mamdani, who campaigned on a platform of tenant rights and affordability, argues that income stagnation among residents demands immediate relief and that landlords hold too much power. Democrat Zohran Mamdani, New York City's new mayor, focuses on affordable living for working-class residents through initiatives like freezing rents, fare-free transit, and a new Department of Community Safety. He plans to implement free childcare, higher wages for workers, affordable housing, and improvements to climate education, funded by higher corporate taxes and taxing top earners.
Frequently Asked Questions
What is the proposed rent freeze plan in New York City?
The proposed rent freeze plan in New York City, suggested by newly-elected mayor Zohran Mamdani, aims to freeze rents across the city to provide immediate relief to tenants whose incomes have stagnated.
Who is Barry Sternlicht and what is his stance on the rent freeze?
Barry Sternlicht is the chairman and CEO of Starwood Capital Group. He strongly opposes the rent freeze proposal, warning that it could lead to a housing market collapse and turn New York into a city like Mumbai.
What are the main issues with the New York City housing market?
The main issues with the New York City housing market include high construction costs, strong trade union demands, heavy regulatory burdens, and a shortage of affordable housing supply.
What are Zohran Mamdani's key policies as the new mayor of New York City?
Zohran Mamdani's key policies as the new mayor of New York City include freezing rents, providing fare-free transit, establishing a new Department of Community Safety, offering free childcare, raising wages for workers, and improving climate education.
What are the potential consequences of a rent freeze in New York City?
The potential consequences of a rent freeze in New York City include non-payments by tenants, withdrawal of investment by property owners and developers, erosion of confidence in property ownership, and a possible shift in the city's economic dynamics, potentially making it less attractive for investment and residents.
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