Doomsayers predicting an exodus of the wealthy from New York City in the wake of Zohran Mamdani’s mayoral victory appear to have been wrong as pricey real estate sales are up in the city.
Sales of luxury homes in New York City — properties that cost $4 million or more — actually increased by 31 percent in November compared to October, according to real estate brokerage Olshan Realty, which spoke to Newsweek.
The outlet also reported data from brokerage Douglas Elliman, which noted a similar increase in high-priced homes. That firm said there were a total of 176 contracts for luxury properties signed in November, marking a 25 percent increase from the previous month.
Donna Olshan, the founder and president of Olshan Realty, called the expectations that a mass of wealthy individuals would leave the city if Mamdani won “pretty ridiculous.”
“If there were people who were thinking about moving to Florida or to another state to escape taxes, and they’re older or retired, maybe this will be a bit of a push… but overall most people are just going to stay put,” she told Newsweek.
Noble Black, a broker for the Corcoran Group, told Fox Business on Monday that there has been no “Mamdani effect” driving people out of the city.
The rumors that Mamdani — who a democratic socialist — would run the rich out of town was spread largely by luxury realtors in Florida, some New York landlords, and political pundits and figures, including Florida Governor Ron DeSantis.
The wealthy have fled states in the recent past — notably the rich leaving California for Texas or Florida — but those moves were typically driven by the desire to escape high taxes.
Black told Newsweek that he thought the predicted flight of the rich was “kind of ridiculous.”
Miki Naftali, the chief executive officer of developer Naftali Group, reached a similar conclusion.
“Yes, there is a new mayor, and there are a lot of worries, but our clients are saying, ‘We love New York,’” Naftali told Bloomberg. “There is no slowdown in demand.”
Even with Mamdani’s plans to increase taxes on the wealthiest people in the city, New York is still a global capital of culture and influence. For many, the access to the city’s offerings is worth the cost of staying.
The city is home to approximately 34,700 people worth $1 million or more, according to 2023 tax data.
Olshan Realty said that so far this year, more than 1,300 contracts for luxury homes have been signed.
