Good morning! The temperature isn’t the only thing rising in New York—rents, political tensions, and market uncertainty are all heating up. The NYC Rent Guidelines Board approved increases of up to 4.5% on stabilized leases, while the city’s real estate sector reels from the surprise primary win of Zohran Mamdani.

Office REITs have slid, developers are hitting pause, and luxury buyers are eyeing the exits. Yet despite the turbulence, Manhattan’s high-end market is holding firm, posting one of the best Junes on record for $4M+ contracts.

At the same time, a broader shift is underway: home sales across New York state are slowing, inventory is swelling nationwide, and buyers are starting to gain ground again.

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New York’s property market was already navigating high rates, softening demand, and shifting demographics—then Zohran Mamdani won his primary. The 33-year-old Democratic Socialist's surprise victory, built on promises of rent freezes and new wealth taxes, has thrown the city’s real estate sector into a frenzy.

Luxury brokers report a surge in wealthy clients exploring exits to Florida, Uruguay, and beyond. NYC-focused real estate stocks—including Vornado, SL Green, and Empire State Realty Trust—tumbled as much as 7%. One major firm even canceled a $300 million hotel deal, citing political instability.

The flashpoint? Mamdani’s proposal to freeze rents on nearly 1 million stabilized units, expand tenant protections, and push new taxes on top earners. For landlords and developers, the policy threat feels existential. “People who never considered leaving are now calling urgently,” said one Manhattan broker.

This moment is about more than policy—it’s about confidence. When political risk enters the equation, even trophy assets get second-guessed.

Takeaway: NYC real estate is entering uncharted waters. For bold investors, this could mark the start of a buying window—but only if you’re ready to stomach the volatility.

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Need help with real estate? Our official partner, Nest Seekers International, can help you buy, sell, rent, or invest, anywhere in the world. Get in touch here.