Why millionaires are fleeing New York after Mamdani's win

Daily Mail​

3 days ago

After Zohran Mamdani won the Democratic primary for mayor of New York City in June, the local real estate market quickly took a dramatic turn. Luxury buyers started pulling the plug on purchasing apartments due to Mamdani's proposed policies, and wealthy New Yorkers who strongly disagree with his progressive politics are looking to leave the city altogether.
Ever since the pandemic, a wave of wealthy residents have relocated full-time to low-tax state Florida and, once again, that appears to be the plan for some. 'Two weeks ago, I had a couple of buyers In the $3, $4 and $5million price point range - one I was selling a building to - who are no longer interested in buying,' New York luxury realtor Jay Batra told the Daily Mail. 'They don't want to hear about Mamdani and the rent freeze he is proposing.'
Mamdani's emphasis is on socialism and the redistribution of wealth. He will be up against incumbent Mayor Eric Adams , who is running as an independent, former New York Governor Andrew Cuomo , who is now also running as an independent, and Republican Curtis Sliwa in November. Mamdani has earned the backing of younger voters through persuasive social media campaigns and in-person visits with New Yorkers across the five boroughs. He's stated his support for taxing the ultra-rich, proposing a 2% tax hike on New York City residents who earn more than $1 million a year. The money from the taxes, he says, will fund programs that would make NYC living more affordable for lower-income residents.
He also supports freezing the rent for the roughly 1 million existing rent-stabilized apartments across the city - the mayor of NYC can appoint members to the Rent Guidelines Board, which oversees adjustments for rent-controlled and rent-stabilized apartments. A rent freeze like the one proposed would essentially put a cap on the income landlords can generate from their properties for a set period of time.
Batra says clients he's worked with for years have long invested their millions in New York real estate, growing a portfolio with multiple apartments. Now, they want out. 'They are very discouraged by everything that's going on in the news, but the consensus overall is that Mamdani is not the direction they want the city to go in,' he said. 'And this agenda is making people pause and think, 'Is this the place they want to park their money?'
Most of those who do end up selling will start anew in Florida, he said. 'They like the ideologies and politics better in Florida.' Daniel de la Vega, President of ONE Sotheby's International Realty, the leading luxury brokerage on Florida's East Coast, told the Daily Mail that there's a wave of New Yorkers headed to the area looking for real estate. 'Our website traffic from the New York area increased by 50 percent in the week following the primary,' he said.
'Our agents are fielding calls from buyers actively reassessing their options, and we have seen a clear uptick in demand across our new developments. 'Many New Yorkers who are already renting in South Florida or have been sitting on the sidelines are now moving with more urgency, wanting to secure a property before another wave of migration.' De la Vega added that, working in the luxury sector, he is seeing an uptick in interest for South Florida from high-net-worth individuals and institutional investors.
'It's a range of different buyers including families, entrepreneurs and wealth managers looking to relocate operations and lifestyle permanently.' Their motivations are consistent: tax advantages, greater stability, safety and an overall elevated quality of life. They are considering options all along the east coast of Florida, and are being 'focused and intentional' about their moves.
'Florida remains a top destination because of our lifestyle, tax advantages and pro-business policies. Political shifts in other states only reinforce the appeal for some.' But as with all real estate transactions, deals take time to structure and close. 'While there's been early interest and movement, Mamdani still hasn't won, so it's too soon to say how this will play out come November,' he added. Frances Katzen, a luxury NYC broker for Douglas Elliman, says she's also had clients unsure of buying because they are 'spooked by the uncertainty' of a possible Mayor Mamdani.
'One of our clients, who has owned and rented out a condo unit in Manhattan for over a decade, recently decided to sell,' she told the Daily Mail. 'Rising operating expenses, growing regulatory uncertainty and the possibility of increased taxes and rent control made him rethink the investment. 'Another client even texted a photo of their new baby and wrote, 'Where should we go, and how much would it cost?'
For Katzen, this does not spell crisis for the city's housing market. 'For many, New York still offers unmatched opportunity, connectivity and cultural vibrancy. It remains one of the world's most dynamic, resilient and desirable real estate markets,' she said. 'No matter how the election shakes out, the city has always proven its ability to adapt and thrive.'