US Investor Warns: NYC Could Become Mumbai Under New Mayor's Policies
Billionaire real estate investor Barry Sternlicht has expressed concerns that New York City could face a Mumbai-like fate under Mayor Zohran Mamdani's socialist policies, including rent freezes and tenant protections.
New York CityMayor Zohran MamdaniBarry SternlichtStarwood Capital GroupRent FreezeReal Estate MumbaiNov 12, 2025
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.
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.
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.
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, which is located in Carl Schurz Park on the Upper East Side of Manhattan, though Mamdani hasn’t confirmed this yet.
Frequently Asked Questions
Who is Barry Sternlicht?
Barry Sternlicht is a US real estate billionaire and the Chairman and CEO of Starwood Capital Group. He is known for his investments in hospitality and real estate.
What are Mayor Zohran Mamdani's key policies?
Mayor Zohran Mamdani's key policies include 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.
How can Mayor Mamdani influence rent regulations?
Mayor Mamdani can influence rent regulations by appointing members to the Rent Guidelines Board, which decides rent increases for rent-stabilized apartments.
What is the Gracie Mansion?
The Gracie Mansion is the official residence of the New York City mayor, located in Carl Schurz Park on the Upper East Side of Manhattan.
What is the Starwood Capital Group?
The Starwood Capital Group is a private investment firm founded by Barry Sternlicht. It focuses on real estate and hospitality investments globally.
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