Small landlords in New York City are considering selling their rent-stabilized properties if mayoral candidate Zohran Mamdani wins the upcoming election. Mamdani’s proposal for a rent freeze has raised concerns among these property owners, many of whom say they are already struggling financially.
Landlords have cited that rising inflation and high interest rates are making it difficult to cover expenses with current rental income. The 2019 changes to state law further limited their ability to raise rents, which has added pressure on small property owners.
Sales of rent-stabilized multifamily buildings with at least 10 units have slowed since the law changed in 2019. According to Paul Rahimian of Parkview Financial, sellers are now reducing prices by an average of 10 percent as marketed buildings linger on the market. Ariel Property Advisors reported that acquisitions of buildings where at least 75 percent of units are rent-stabilized dropped to $751 million last year, representing a decline of over 70 percent from 2018 levels.
Despite these challenges, some landlords remain determined to sell if Mamdani is elected. One Brooklyn landlord told the Wall Street Journal she plans to sell her four-unit building after struggling with refinancing and tenant evictions.
The Mamdani campaign responded by stating, “committed to protecting the livelihoods of small landlords and maintaining a stable, functioning property market.” The campaign also noted Mamdani’s support for a hardship exemption that would allow landlords who can demonstrate financial need to increase rents.
Calls for action have grown louder among industry observers. Earlier this year, the Citizens Budget Commission urged the Rent Guidelines Board to prevent what it described as a maintenance “death spiral,” where repair costs could exceed the cost of constructing new buildings.
