During an interview, the left-handed co-chair of the Democratic Socialists of America in New York took aim at landlords in the city, but was quickly interrupted by Fox News host Martha McCallum.
Gustavo Gordillo, co-chair of the DSA’s New York Chapter, appeared on “The Story” on Friday. He firmly criticized landlords and their earnings, pointing out issues in the housing market.
“The problem with our housing system is that we focus on tenants needing to get back on their feet, to show financial responsibility,” he said.
“Yet, the same standards aren’t applied to landlords,” he argued further.
He noted that, in New York, landlords typically earn a 12% return on their investments when asked by McCallum about fair profits for them.
“If 12% isn’t acceptable, what would be fair?” McCallum inquired.
Gordillo claimed landlords are “frustrated” by this return, adding, “We don’t believe anyone should have a constitutional right to a double-digit return.”
McCallum cleverly responded, “Shouldn’t everyone have the right to a double-digit return?” To which Gordillo stated, “No one has rights.”
“Why do you think that?” McCallum asked, clearly taken aback.
Gordillo explained that though it’s not constitutional, if rent freezes are implemented, landlords might protest, claiming it threatens their businesses.
In response, McCallum stated, “Well, they’re running a business, trying to do it well. Are all landlords flawless? Absolutely not.”
“However, I think saying no one should earn double-digit profits runs counter to the notion of ‘You can achieve anything in New York,’” she added.
Last month, the city’s Rent Guidelines Committee enacted Mayor Zoran Mamdani’s promise to freeze rents on approximately 1 million rent-stabilized units, much to the frustration of numerous landlords who were already facing difficulties in maintaining profitability.
Landlord Rav Bauta expressed to the Post that the expenses do not correlate with the income being generated from the properties. His company, Zion Equities, manages around 4,000 apartments in New York, including about 800 that are rent-stabilized.
Bauta noted that expenses for rent-stabilized properties can equal or exceed those of fair market properties, covering costs like insurance, wages, supplies, and utilities. Though income is capped, there’s no mechanism to limit expenditures.
“It’s clear this model isn’t sustainable. It doesn’t even factor in the necessary debt payments needed for ongoing maintenance and investment in various properties,” Bauta concluded.
