Real estate experts are sounding the alarm over what could happen to New York City townhouse owners if mayoral candidate Zohran Mamdani wins the election.
The self-described "Democratic socialist" has taken the city by storm with a housing platform that includes a rent freeze and higher taxes on top earners. The so-called "Mamdani Effect" has rippled through the city since his campaign began, with Manhattan’s suburban housing markets seeing a surge in demand.
"Everybody is gearing up for sellers of townhouses, in particular," Dolly Lenz, CEO of Dolly Lenz Real Estate, said Tuesday on "The Claman Countdown." "Imagine you own a townhouse in New York. … He says he’s going to reduce police. You don’t want to be in a townhouse. You want to be in a doorman building, right? So that is a problem."
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Jenny Lenz, managing director at Dolly Lenz Real Estate, explained that consumers are "a little hesitant right now" and opting to rent instead of buy while waiting to see what’s next.
Mamdani’s campaign has centered on affordability and redistribution of wealth — ideas that have resonated with some New Yorkers, according to previous reports. The Lenz mother-daughter duo noted that affordability remains a top issue for Americans as home prices continue to rise compared to pre-COVID levels.
"We’re 53% higher. That is a staggering number," Jenny said. "We’ve had 27 straight months of price increases, and the median home price is about $415,000 now. So that’s really the issue, right? But at the same time, like we said, mortgage rates are coming down. So, we are seeing our friends and clients dip their toes back into the market, which is super exciting."
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Americans "voting with their feet" has reshaped the housing market as blue states rebound in real estate.
"It’s because everybody fled, everybody’s coming back, and prices have bottomed," Dolly told FOX Business. "So, you’re looking at any place like New York — pricing has bottomed. Looking at Florida, Florida’s expensive. So, there’s not as much transaction volume; however, prices remain very high."
Jenny added that areas where Americans once fled are "not doing well" because many residents have since returned.
"Developers went down there — to Florida, to Texas — and built and built and built, maybe a little too much," she said. "Now, people are moving back. So, you’re seeing more deals in those markets, except in areas with very limited supply, like Palm Beach."
Other consumers, the experts said, are trying to balance both experiences — living in Florida and New York — by downsizing one home and buying another.
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As first-time homebuyers reenter the market, real estate experts say a Federal Reserve rate cut would help.
"Any mortgage reduction is welcome, obviously, and a Fed rate cut is welcome," Dolly said. "I have news for Jerome Powell: Kindly, please make it two this year. We need it, and it’s good for the economy, it’s going to be good for everyone. It trickles down all the way through the system."
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