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Democratic Socialist Zohran Mamdani won the Democratic Primary for Mayor of New York City, an outcome that has stirred a wave of reactions across the real estate industry. With his controversial housing and tax policy proposals grabbing headlines, many buyers, sellers, and property owners are asking: What does this mean for me?

While there’s still a long road ahead (the general Election is November 4) here’s what you need to know now to keep you grounded in facts, not fear:

Key Policy Proposals—and the Reality Behind Them

Claim: A Rent Freeze on Nearly 1 million Rent-Stabilized Units
Reality: The mayor doesn’t set rents for regulated apartments. That authority rests with the Rent Guidelines Board, an independent body. Any proposed rent freeze is more symbolic than enforceable without their consent.

Claim: Tax Hikes on High Earners and Corporations
Reality: Mamdani has proposed a 2% surcharge on income over $1 million and raising the corporate tax rate to 11.5%. But the mayor cannot implement these changes unilaterally; they require approval from the State Legislature and the governor. Notably, Governor Kathy Hochul recently called additional tax increases a “nonstarter.” Plus, in 2021, the state already raised taxes on top earners and corporations.

Claim: Redistribution of the Property Tax Burden
Reality: Mamdani has called for shifting the property tax load away from outer-borough homeowners and toward wealthier neighborhoods. While he cannot change property tax law without Albany’s approval, there is a lever he does control: the assessment ratio.

• NYC’s Class 1 properties (which include most townhouses) are protected by state-mandated caps on assessment growth—no more than 6% annually or 20% over five years.
• These caps have led to many luxury homes being significantly under-assessed.
• If Mamdani were to lower the assessment ratio while simultaneously raising the tax rate for Class 1 properties, he could effectively increase taxes on high-end homes while easing the burden on less expensive ones—without changing the law.

Real Estate Resilience in Perspective

It’s easy to feel rattled by political uncertainty, especially when media coverage emphasizes worst-case scenarios. But it’s important to remember New York City’s track record. The real estate market has proven itself remarkably resilient, time and again.

From the 1970s fiscal crisis and the crime waves of the '80s, to 9/11, the 2008 recession, Superstorm Sandy, and the COVID-19 pandemic, New York has weathered every storm and emerged stronger.

More recently, a proposed increase in the SALT deduction cap to $40,000 could offer meaningful tax relief for many NYC homeowners, further supporting local housing demand.

Some buyers and sellers are taking a wait-and-see approach—but many others are moving forward with confidence. Yes, there's noise in the headlines, and yes, Mamdani’s win introduces new unknowns. But as always, knowledge is power. Staying informed will be essential in the months ahead.