Concerns for Small Landlords Amidst Mamdani’s Housing Plan

Zohran Mamdani, a candidate for New York City’s Democratic mayoral nomination, has been advocating for a freeze on rent for rental apartments. His focus on affordable housing has resonated with many voters, garnering significant support in the primaries this past June.

However, the owner of a small multifamily property expressed to the Wall Street Journal that Mamdani’s housing policies could diminish their profits and potentially force them to sell. These small landlords, often seen as “mom and pop” operators, manage a notable portion of the city’s rental units.

According to housing data from Justfix.org, approximately 28% of New York City’s rental properties are owned by these smaller landlords. Many of them have been facing increasing challenges, especially since the pandemic, including rising maintenance costs, slow permit approvals, and problematic tenants.

Some landlords shared that their situations feel dire, with reports of a growing number choosing to exit the market entirely. The market for rent-stabilized buildings has been declining for several years now, adding to their concerns.

In fact, sales of rent-stabilized apartments comprising more than ten units dipped significantly, totaling $751 million last year—a staggering 70% drop from 2018, according to Ariel Property Advisors. Paul Rahimian, a commercial real estate lender, noted that property owners are experiencing, on average, a 10% decline in their portfolios, labeling Mamdani’s proposed policies as potentially disastrous.

New rent laws established in 2019, which were put into place under Andrew Cuomo, limited rent increases and reduced the attractiveness of investing in rent-stabilized properties. Many landlords are worried that a total rent freeze will cripple an already struggling market.

One landlord from Brooklyn shared their struggle to meet a $3,800 mortgage while contemplating a sale if Mamdani prevails in the election. They’re facing a challenging situation with significant financial pressure weighing heavily on them.

While the Mamdani campaign has acknowledged the concerns of burdened landlords, they also advocate for exemptions where financial conditions can justify rent increases. A representative from NYS Tenant Block, an aligned pro-tenant group, mentioned that rent freezes aren’t necessarily “make-or-break” for landlords, highlighting the complex and often divisive nature of housing policy decisions.