The city that never sleeps wants to put its high prices to rest.<\/p>\n
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Addressing New York’s affordability problems was a pillar of Zohran Mamdani’s mayoral campaign. Now that he’s in office, those promises are being tested.<\/p>\n
Three of his proposals \u2014 free buses, universal childcare, and a rent freeze \u2014 have been rolled out in other cities. BI’s Juliana Kaplan broke down the previous successes (or failures) of the affordability plans<\/a> to gauge what New Yorkers can expect.<\/p>\n To fund these efforts, Mamdani is pushing to tax the city’s richest residents (or sometimes residents<\/a>). That’s not entirely up to him, as those decisions are mostly handled at the state level, but he’s made some progress.<\/p>\n Gov. Kathy Hochul unveiled plans to tax property owners who primarily live outside NYC but have a local home worth over $5 million<\/a>. (The fancy folks call it a pied-\u00e0-terre.) Juliana also looked at how that type of tax has worked in other cities<\/a>.<\/p>\n The tax is expected to bring in $500 million, which only makes a slight dent in NYC’s budget gap. In the meantime its become a lightning rod for business leaders and Wall Streeters<\/a> to speculate about a potential NYC exodus.<\/p>\n Mamdani’s affordability push faces another headwind: the city is showing no signs of slowing down.<\/p>\n As much as New Yorkers complain about prices, NYC’s housing stock and services are still in high demand. Even though most NYC renters struggle to afford housing<\/a>, plenty of people are eager to give it a try.<\/p>\n Carving out room for more affordable housing could solve that issue. But this is a city where every square foot \u2014 parking spots can cost more than $1,000 a month \u2014 is at a premium.<\/p>\n On the flip side, the New-York-or-nowhere attitude also works in Mamdani’s favor. The city has come back stronger from multiple crises over the years, from September 11th to the global financial crisis and the COVID-19 pandemic. Its draw as a financial and cultural hub proved too strong, despite the pull of cities like Miami or Austin.<\/p>\n Could Mamdani’s plans to tax the rich be the city’s breaking point? A recent spat between the mayor and billionaire Ken Griffin highlighted the potential risk.<\/p>\n Mamdani called out the Citadel CEO in a video posted online last month<\/a>, prompting Griffin to call it “creepy and weird.”<\/a> Griffin’s deputy defended his boss and hinted the firm could rethink its plans to redevelop a midtown tower<\/a> for more than $6 billion.<\/p>\n Griffin has shown a willingness to relocate before, moving Citadel and Citadel Securities’ headquarters from Chicago to Miami. But the benefits of the Big Apple, especially for top investors, have proved tough to top<\/a>.<\/p>\n