New York City’s new mayor-elect, Zohran Mamdani, is stepping into office amid sharp criticism from major real estate figures. Billionaire Barry Sternlicht, CEO of Starwood Capital Group, warned that the city could face “a really tough time” under Mamdani’s leadership and revealed he may move his company out of Manhattan.
Sternlicht blamed powerful trade unions for soaring construction and management costs, claiming they make housing projects unsustainable. “Every project over $100 million has to go union, and it’s super expensive,” he told CNBC. He argued that these high costs limit new housing supply and make blue states increasingly unaffordable.
Reacting to Mamdani’s plan to freeze rents and expand social programs, Sternlicht said such policies risk discouraging landlords from collecting rent. “If tenants stop paying, others follow—and the city could turn into Mumbai,” he warned.
The billionaire also raised fears about public safety, recalling Mamdani’s past “Defund the Police” stance. “If people don’t feel safe, they’ll leave,” Sternlicht said, urging the mayor-elect to learn from history.
Mamdani, the city’s first Muslim and South Asian mayor-elect, has pledged free bus service, universal childcare, and city-owned grocery stores.
