Why Only 5% of Investors Still Buy Apartments in New York

On this episode of the Heartland Multifamily Show, I explain what I call The Mamdani Effect.

Zohran Mamdani, the recently elected mayor of New York City, has promised to bring down rent prices. While the intention may be political or social, the economic reality of real estate tells a different story.

In multifamily investing, expenses rise over time. If rent growth is capped or restricted, the math eventually breaks. When income is frozen and costs continue to climb, investors respond in predictable ways.

That response is the Mamdani Effect.

Serious investors avoid the market entirely. Capital moves elsewhere. And what’s left are two types of owners:

1. social-mission investors who are willing to accept poor returns, and
   
   
2. owners who are stuck and can’t sell.
   
   

New York City doesn’t make the list of top places to invest—not because investors dislike the city, but because the numbers no longer work. Policy changes drive behavior, and markets adjust accordingly.

That’s why I tell investors this: your investments must align with your politics.

If you’re a social-worker investor, NYC may make sense for you. There’s nothing wrong with that. But that’s not who I am—and it’s why I continue to focus on the Heartland, where the economics, incentives, and long-term fundamentals still align.

This episode isn’t a personal attack. It’s an analysis based on decades of real-world experience in multifamily real estate—and why policy decisions matter more than headlines.