Mamdani’s Tax-the-Rich Fantasy Crumbles: Landlord Levy Would Hammer NYC Renters Hardest
Published Date: 21 Feb, 2026
February 21, 2026
Zohran Mamdani’s much-hyped plan to “tax the rich” and freeze rents is already unraveling into a textbook case of progressive wishful thinking gone wrong. The Brooklyn assemblyman and Democratic frontrunner for mayor released new budget details this week showing that his fallback option a 9.5% property tax increase if Albany won’t approve his millionaire and corporate tax hikes would fall squarely on landlords and building owners, who have only one realistic way to absorb the blow: raise rents on tenants.
Housing economists and property owners warn the math is brutal and predictable. A nearly 10% property tax hike would force most multifamily landlords to push through rent increases of 5–8% just to cover the added cost, according to preliminary modeling by the Rent Stabilization Association and independent analysts. For a $3,200 two-bedroom apartment in Brooklyn or Queens already considered “affordable” by city standards that translates to an extra $160–$256 per month, or $1,920–$3,072 more per year per household. Small landlords, many of whom are themselves middle-class immigrants or retirees, say they would have no choice but to pass the full burden forward or sell, reducing the supply of rental units.
Mamdani insists the property tax hike is only a “last resort” bargaining chip to force Governor Hochul to accept his preferred plan: a new 13.5% city income tax bracket on incomes above $1 million, a 12.5% bracket on $500,000–$1 million, a 2% wealth tax on net assets over $50 million, and an 11.5% corporate tax on large financial institutions. He claims this revenue roughly $5.7 billion annually would fund a citywide rent freeze, vouchers for non-stabilized tenants, and construction of 120,000 permanently affordable units.
But Albany has shown zero interest in approving those state-level tax hikes, leaving Mamdani’s “last resort” looking more like the only resort. Real estate groups say the property tax increase would hit hardest in the outer boroughs where most rent-stabilized buildings are concentrated exactly the working-class and middle-income neighborhoods whose residents voted heavily for Mamdani expecting lower housing costs.
“This is what happens when you elect a socialist who thinks money grows on trees,” said Rent Stabilization Association president Joseph Strasburg. “Landlords don’t have magic profit margins to absorb a 9.5% tax hit. The money comes from tenants. Period.”
Even some left-leaning City Council members have started to distance themselves, quietly warning staff that a property tax surge would disproportionately punish renters in their districts. Former Governor Andrew Cuomo, who has been privately advising moderate Democrats, called the plan “economic malpractice” and predicted it would accelerate the city’s ongoing population and business exodus.
Mamdani’s campaign continues to insist the tax increases would affect only the ultra-wealthy and that independent modeling shows no significant out-migration risk. Critics counter that high-net-worth individuals and corporations are already highly mobile, pointing to the post-pandemic flight of residents and businesses that has left the city with a persistent budget hole.
As the June 2026 Democratic primary draws closer, Mamdani’s tax-and-spend blueprint is shaping up as the defining issue. Many of the young renters and first-time voters who propelled him to the front of the pack may soon discover the hard truth: in New York City real estate economics, tax hikes on landlords almost always end up as rent hikes on tenants. The people who thought this socialist savior would make housing cheaper are about to learn a very expensive lesson. Full budget documents and revenue projections are posted on the Mamdani for Mayor campaign website.
Date: 21 Feb, 2026
