Billionaire investor Barry Sternlicht has warned that New York City risks “turning into Mumbai” under newly elected Mayor Zahran Mamdani, accusing the progressive leader of pushing anti-business policies that could drive away investors and residents.
In a fiery interview with CNBC The city’s high construction costs, union dominance and a left-wing housing agenda make development nearly impossible, said Property Bligh, president of Starwood Capital Group.
“More than $100 million, every project in New York has to go to the union, and that’s very expensive,” Sternlicht said. “This is one of the main reasons why housing costs are so high in blue states and it’s difficult to add to housing supply. And then the far left goes crazy and says renters don’t have to pay…then you’ll turn New York City into Mumbai.”
Sternlicht, whose company manages major commercial and residential properties in Manhattan, said he is already considering moving Starwood’s offices out of New York because of what he called “anger at success” and hostility toward developers.
He criticized Mamdani’s plan to freeze rents as part of his affordability agenda, arguing that it ignores the real cause of the housing shortage. “The core issues are not what he is focusing on. We need to increase housing. This is not going to happen easily. You need serious subsidies from the government if they want us to work with the unions,” Sternlicht said.
The billionaire also raised the alarm about public safety, warning that Mamdani’s progressive stance on police could prompt families to leave the city. “If people feel like their kids aren’t safe on the streets, they’ll leave. If he defunds the police or doesn’t give them the honor and status they deserve, the city is going to have a really hard time,” he said.
Although Sternlicht said he believed New York would survive, he predicted it would “get a lot worse before it gets better,” accusing Mamdani of adopting policies that punish success.
“The million people who voted for him probably won’t realize that socialism has never worked anywhere on the planet,” Sternlicht said. “Helping others achieve the American dream is a better message than taxing everyone who succeeds and forcing them to leave.”
(tags for translation) Barry Sternlicht
