A Democratic Socialist for mayor. Three casinos. New guidelines for residential brokers. The demise of member deference.
2025 was a consequential 12 months of political and coverage shifts that can have an effect on the actual property trade.
The massive one, clearly, is that New York Metropolis can have a new mayor come January 1. Democratic Socialist Zohran Mamdani wasn’t the primary and even second selection for a lot of within the trade. In actual fact, many rallied behind former Gov. Andrew Cuomo forward of the June major, pouring hundreds of thousands of {dollars} into political motion committees backing his marketing campaign.
When Cuomo misplaced, some jumped ship to Mayor Eric Adams, hoping he might achieve momentum after escaping federal corruption prices. However as polls confirmed him in fourth place (behind Republican Curtis Sliwa) and prices continued to pile up towards his inner circle, he dropped out of the race in September.
Some within the trade have found hope in Mamdani’s dedication to constructing extra housing and to exploring methods to cut back prices for landlords, together with by means of potential property tax reform and different insurance coverage strategies. Nonetheless, homeowners are cautious of this pledge to freeze rents for stabilized tenants for 4 years. That promise could also be difficult by Adams’ last-minute appointments to the Hire Tips Board, although Mamdani will be capable of substitute the entire Adams appointees in 2027.
Two weeks earlier than the first, the Equity in House Rental Bills, or FARE, Act went into effect. The legislation reworked how residential rental brokers work within the metropolis, requiring whoever hires brokers to pay their fee. The Actual Property Board of New York filed a lawsuit difficult the legislation quickly after its passage, alleging that it violates the First Modification rights of brokers and landlords as a result of it discourages the publishing of rental listings. The group has an appeal of a federal court docket’s dismissal of that declare pending earlier than the Second Circuit.
In final 12 months’s end-of-year newsletter, I stated 2024 was an enormous 12 months for Yimbys. This 12 months additionally included some main wins for pro-housing people. Voters authorised 4 housing-related ballot measures, three of which permit sure tasks to both bypass Metropolis Council approval or attraction rejections from the physique. The modifications don’t utterly kill member deference (the Metropolis Council custom of voting on land-use points in accordance with the desires of the native member), however weaken it significantly. The creation of an appeals board additionally elevates the function borough presidents play in zoning approvals.
This might be a dynamic we’ll be following carefully, in addition to the additional rollout of Metropolis of Sure for Housing Alternative, the federal authorities’s expansion of low-income housing tax credits and the way all of those initiatives have an effect on the amount of growth.
In the meantime, on their method out the door, Metropolis Council members authorised a number of payments that some see because the Council’s method of reasserting its authority over housing coverage following the approval of the poll measures. The Council authorised a package of housing bills that set new guidelines for the sorts of housing the town funds. One of many payments creates minimal wages for development staff on sure tasks.
The Council additionally authorised the Community Opportunity to Purchase Act, or COPA, which supplies city-approved nonprofits and joint ventures first dibs on shopping for distressed multifamily buildings. Landlord teams have warned that the measure will decelerate offers and scare away potential traders.
The mayor has known as the measures shortsighted, nevertheless it’s not clear if he’ll veto the payments.
If the payments grow to be legislation, housing teams have warned that they may add hundreds of thousands of {dollars} to the Division of Housing Preservation and Improvement’s price range wants or will lead to hundreds of fewer housing items being constructed every year.
This 12 months additionally noticed the conclusion of the years-long competitors for 3 downstate on line casino licenses. Neighborhood Advisory Committees eradicated half of the rivals, and after MGM Resorts dropped its bid to show its Yonkers facility right into a full-blown on line casino, solely three proposals have been left to vie for the as much as three state licenses accessible. The state Gaming Fee agreed to concern licenses to Steve Cohen’s Metropolitan Park, Bally’s Golf Hyperlinks at Ferry Level and Resorts World’s Queens Aqueduct.
We’ll be watching the progress of those tasks — and the varied promises made by the on line casino groups — over the following 12 months.
What we’re fascinated by: Talking of issues we’re watching: President Donald Trump met with Mayor-elect Zohran Mamdani in November, and the 2 highlighted a number of factors of settlement, together with the necessity for extra housing. In actual fact, Trump stated of the incoming mayor: “I feel you’re going to have, hopefully, a very nice mayor. I count on to be serving to him, not hurting him.” Will this sentiment final? Ship a be aware to kathryn@therealdeal.com.
A factor we’ve realized: Wild horses in Australia are known as brumbies.
Programming be aware: The e-newsletter is taking a break from Dec. 24 till Jan. 5. Thanks for studying, and have a protected and completely happy vacation!
Elsewhere in New York…
— Council member Erik Bottcher introduced on Monday that he is not going to run to switch Rep. Jerrold Nadler within the twelfth Congressional District, City & State reports. As a substitute, he plans to run for Brad Hoylman-Sigal’s state Senate seat. (Hoylman-Sigal is leaving the state legislature to grow to be Manhattan borough president.)
— Mayor-elect Zohran Mamdani on Tuesday tapped Lillian Bonsignore as the following commissioner of the Fireplace Division of New York. Bonsignore beforehand served because the FDNY’s chief of EMS operations.
— In a groundbreaking ceremony that was extra of an announcement of when to count on an precise groundbreaking, metropolis and state officers on Tuesday stated demolition work on the longer term web site of the Science Park and Analysis Campus (SPARC) in Kips Bay will start in February 2026. Building of the campus is slated to start in 2027.
Closing Time
Residential: The highest residential deal recorded Tuesday was $28.5 million for a 9,704-square-foot, sponsor-sale condominium at 50 United Nations Plaza in Turtle Bay. The Zeckendorf Advertising and marketing group had the itemizing.
Industrial: The highest business deal recorded was $28 million for a 42,592-square-foot industrial property at 75 Onderdonk Avenue in Maspeth.
New to the Market: The very best value for a residential property hitting the market was $4 million for a 3,720-square-foot, two-family house at 308 Clermont Avenue in Fort Greene. Ari Harkov, Christian George Emanuel and Warner Lewis with Brown Harris Stevens have the itemizing.
Breaking Floor: The most important new constructing allow filed was for a proposed 20,185-square-foot, eight-story residential constructing at 3822 Sedgwick Avenue in Kingsbridge Heights. Nikolai Katz filed the allow on behalf of Sinai Gross.
— Matthew Elo
