Real estate experts blast Mamdani’s math-defying tax plan, warn of higher rents and flight

February 19, 2026 - 20:16

A bold proposal from New York City's mayor to dramatically increase property taxes is facing fierce backlash from real estate experts and industry leaders. The plan, which calls for a 9.5% hike on residential properties, is framed as a necessary measure to close a massive $5.4 billion budget shortfall. The mayor has positioned it as an ultimatum to state lawmakers, stating the increase will be unavoidable unless Albany passes new taxes targeting the ultra-wealthy.

Critics within the real estate sector are issuing stark warnings, arguing the mayor's calculations are fundamentally flawed. They contend that the enormous financial burden of such a tax increase would not be absorbed by property owners alone but would inevitably be passed down to tenants in the form of significantly higher rents. This, they warn, would exacerbate the city's existing affordability crisis.

Furthermore, experts are cautioning that the policy could trigger unintended consequences for the city's long-term economic health. They predict a potential flight of both residents and investment capital to neighboring municipalities with lower tax rates, destabilizing the housing market and eroding the city's tax base over time. The debate now moves to the state capital, where the fate of the "ultra-wealthy" tax proposal may determine the next move for the city's budget and the wallets of millions of New Yorkers.