Former New York City Democratic assembly member and now CEO of the New York Apartment Association, Kenny Burgos, has issued a dire warning about the potential consequences of Zohran Mamdani’s proposed rent freeze plan for New York City. Burgos argues that such a policy would exacerbate an already dire housing crisis, potentially leading to the collapse of a significant portion of the city’s housing stock, which is already considered functionally bankrupt by experts.
Burgos, who now leads the New York Apartment Association, warned that Mamdani’s proposal to freeze the rent on rent-stabilized housing, which comprises almost 40% of the housing stock within New York City, would be disastrous. He pointed out that the city’s housing stock is already under immense stress, with the NYU Furman Center categorizing over 200,000 units as functionally bankrupt. Burgos stated that a rent freeze would be the ‘nail in the coffin’ for these units and would ultimately lead to insolvency, despite Mamdani’s stated goals of achieving affordability for working families.
Mamdani’s rent freeze plan has already faced criticism from experts, with some suggesting that the policy could further strain housing costs in New York City. Burgos argued that the root of the housing problem lies in government control of costs, particularly property taxes, which are the largest expense for housing operators. He asserted that addressing affordability and costs head-on requires ‘really tough conversations’ that involve reducing the various costs impacting housing, rather than simply capping rents.
Burgos emphasized that the majority of New York City’s funding comes from property taxes, and Mamdani’s plan would face challenges in achieving his ‘big ticket proposals’ with a housing plan that could ‘decimate and destroy’ the very housing that supports that funding. He also pointed out the irony of the policy, as low-income and working-class voters, who Mamdani has championed, might actually be the ones harmed by his housing policies.
The housing crisis in New York City is a pressing issue, with Burgos describing the current situation as the ‘worst crisis’ since the 1970s. He warned that a potential mayor with a rent freeze as a top policy position could lead to a ‘catastrophe waiting to happen,’ affecting not just rent-stabilized housing but also public housing and other housing types. Despite the challenges, Burgos acknowledged the importance of addressing the housing issue but stressed the need for comprehensive and realistic solutions rather than short-term, potentially harmful policies.