On November 4th 2025., New York City has elected Assemblymember Zohran Mamdani as Mayor of New York City. Mamdani’s victory marks a shift toward progressive housing policies. He campaigned on a bold platform to “lower the cost of living” in NYC – highlighting proposals such as a citywide rent freeze on regulated apartments, accelerated construction of affordable housing, and cracking down on abusive landlord practices.
In practice, this means investors in NYC real estate can expect a more tenant-centric policy environment. Mamdani’s signature pledge to “freeze the rent” would halt increases for roughly 30% of the city’s apartments that are rent-stabilized. He frames this not as anti-development, but as immediate relief for renters while longer-term housing supply solutions take effect. (Notably, Mamdani has also voiced support for pro-growth measures like upzoning affluent areas and streamlining permits to spur new housing construction, indicating a nuanced approach.) Overall, the new mayor’s agenda puts affordability and tenant protections front and center – a reality investors must factor into their NYC strategies.
On the other hand, according to some outlets like Politico, New York landlords are already “bracing themselves,” with some accelerating sales or shifting investment to upstate markets in anticipation of stricter rent policy and enforcement. However, if there’s a “Mamdani effect,” it hasn’t yet shown up in the sales tape yet. According to Redfin, in September 2025, Manhattan (New York County) closed 834 home sales vs. 783 a year earlier, about a +6.5% YoY increase. Brooklyn (Kings County) logged 595 sales vs. 569, roughly +4.6% YoY. By contrast, Queens recorded 764 vs. 816 (≈ –6.4% YoY) and The Bronx 176 vs. 197 (≈ –10.7% YoY). But even if there are no signs of a broad Manhattan/Brooklyn exodus in the latest monthly reads, while Queens and The Bronx saw softer volume, we will explore this topic a
NYC’s Airbnb Landscape: Strict Laws, Weak Compliance – Until Now?
New York City already had some of the nation’s strictest short-term rental rules even before Mamdani’s election. Local Law 18 – enforced starting September 2023 – fundamentally changed the Airbnb landscape in NYC. This law requires hosts to register with the city’s Office of Special Enforcement and abide by strict conditions: the rental must be in the host’s primary residence, no more than two guests at a time, and the host must be physically present during the stay. In effect, entire-apartment rentals for fewer than 30 days are banned, unless a host stays on-site – a provision that Airbnb itself likened to a “de facto ban” on short-term rentals in the city.
These tough rules were a response to years of lax enforcement. By 2018, an estimated 60,000+ illegal Airbnb listings were operating in NYC according to some sources, as many investors and owners rented out units in violation of existing laws with little consequence. Local Law 18 dramatically shifted that status quo. Once full enforcement kicked in, the number of active Airbnb listings plummeted by over 80% – from about 22,000 in August 2023 to roughly 2,300 registered listings by early 2024. Platforms like Airbnb were forced to delist unregistered properties, and many hosts who couldn’t meet the new requirements simply exited the market. City officials tout this as a success that has returned units to the long-term housing supply – indeed, many former short-term rentals were converted into regular long-term leases in popular areas.
However, enforcement on the ground has not been without challenges. The city relies heavily on platforms’ compliance and host self-reporting. Some determined operators have sought out loopholes or moved to underground channels. For example, a group of small property owners rallied in 2025 to protest that the law’s strict host-presence rule was unfair, and backed an unsuccessful bill to loosen rules for one- and two-family home rentals. For now, though, the regulatory regime stands firm: NYC’s short-term rental market is tightly regulated and enforcement is ramping up, creating a very different landscape than the free-for-all of years past.
Investors can no longer count on “Airbnb income” from an NYC condo or apartment unless they comply with the restrictive registration system – or pivot to longer stays of 30+ days, which remain legal. This crackdown set the stage just as Mamdani takes office, aligning with his platform’s emphasis on housing affordability (by curbing illegal rentals that remove housing stock). All signs point to continued strict short-term rental enforcement under the new administration.
Top 500 US Airbnb Rental Markets - 2026
Instantly compare top 500 short-term (Airbnb) rental markets in the US
Policy Shifts on the Horizon: What Mamdani Might Do Next
With Mayor Mamdani now at the helm, investors should prepare for potential policy changes that could further impact returns and strategies in NYC. Based on his platform and public statements, here are the key areas to watch:
1. Broader Housing Initiatives
Mamdani’s housing agenda doesn’t stop at rent control. He advocates for measures like social housing development, stronger code enforcement, and programs to boost homeownership for working-class New Yorkers. Investors might see new fees or requirements aimed at funding these initiatives. For example, developers could face stricter inclusionary zoning mandates (requiring affordable units in new projects) or higher transfer taxes on sales of big buildings to fund tenant programs.
Also, enhanced tenant protections could emerge, such as tighter limits on security deposits, more free legal assistance for tenants in housing court, and anti-harassment regulations – all of which could add compliance costs for landlords. While these policies are aimed at improving tenant stability and curbing speculative practices, they contribute to an environment in NYC that is increasingly complex and costly for property owners to navigate.
2. Broader Housing InitiativShort-Term Rental Enforcementes
Mamdani is expected to maintain a hard line on illegal short-term rentals. His tenant-first stance aligns with Local Law 18’s objectives – freeing up housing for residents and curbing “illegal hotel” operations. We are unlikely to see a rollback of the strict registration rules. If anything, enforcement might intensify. The new Mayor could dedicate more resources to the Office of Special Enforcement for inspections and follow-up, meaning hosts trying to skirt the rules (for example, by quietly running unregistered Airbnbs) face higher risk of fines.
Importantly, Mamdani has shown little sympathy for arguments that the Airbnb clampdown went too far. When a coalition of small hosts lobbied to relax the rules for owner-occupied 1-2 family homes, city officials (now likely empowered by Mamdani’s administration) did not budge. Investors should anticipate that NYC will remain one of the most restrictive short-term rental markets in the country, and plan accordingly. Those already investing in NYC rentals might pivot toward mid-term (30+ day) rentals or other creative niches to stay compliant under the Mamdani era.
3. Expansion of Rent Control and Tenant Protections
3. : Mamdani’s headline proposal – a rent freeze for all rent-stabilized apartments – will be an early flashpoint. Rent stabilization covers nearly 1 million units in NYC (housing ~2.5 million tenants), and normally the city’s Rent Guidelines Board permits modest annual rent increases for these units. Mamdani has vowed to set increases to 0% for the foreseeable future, according to housingjusticeforall.org. If he succeeds, owners of these buildings will see flatlined rental income even as operating costs rise with inflation.
From an investor perspective, this could squeeze profits in the multifamily sector and make value-add strategies difficult (since rents can’t be raised even after renovations, aside from small hardship exceptions). Mamdani argues a freeze is necessary to prevent displacement and build political capital for pro-housing reforms, but landlords fear it will reduce incentive to maintain units. Additionally, Mamdani and his allies may push to expand rent stabilization or similar protections to units that are currently market-rate. Progressive legislators have championed “good cause eviction” laws at the state level, which would limit rent hikes on unregulated units and require justification for evictions. A city-level version or renewed state effort could get a boost from Mamdani’s victory.
In short, stronger rent controls and eviction protections are on the table – a clear risk factor for investors relying on raising rents over time.
4. Landlord Expenses and Tax Policy
One noteworthy nuance in Mamdani’s approach is that he has acknowledged the burden that strict rent control could place on property owners. In interviews, he has suggested finding ways to reduce landlords’ major expenses – insurance, utilities, even property taxes – to offset a rent freeze. How this might materialize is uncertain, but it indicates the new administration might explore targeted relief for small landlords even as it holds the line on rent increases. That said, overall tax policy under Mamdani is likely to shift costs toward larger investors and high-income owners. He campaigned on raising taxes on the wealthy to fund social programs.
For real estate, this could revive proposals like the “pied-à-terre” tax on luxury second homes that sit vacant. Such a tax, which has been debated for years, would levy an annual surcharge on non-primary residences (often high-end condos used sparingly by out-of-towners) to both generate revenue and prod owners to rent out unused units. Progressives argue this would tap into an estimated 75,000 pied-à-terre apartments in NYC and improve housing availability.
Additionally, property tax reform could be on the agenda. NYC’s property tax system has long been inequitable – for instance, small homes often face lower effective tax rates than large rental or commercial buildings. A rebalancing could see higher property taxes on luxury properties or investor-owned units, increasing holding costs. Beyond real estate-specific taxes, Mamdani supports higher income taxes on top earners and higher corporate taxes. Investors who are NYC residents (or who have pass-through income taxed through NYC) may feel that pinch personally.
The bottom line is a likely increase in the tax burden on high-value properties and affluent investors, though details will depend on negotiations with the state (since Albany must approve many NYC tax changes).
Airbnb Pushes Back in New York
According to the New York Post, Airbnb has been actively lobbying city and state officials in anticipation of Mamdani’s win. The platform seeks:
- Legalization or permitted use of full-unit rentals in certain districts
- An easier, streamlined registration process
- A grace period or amnesty for current unlicensed hosts
Airbnb’s most recent push to loosen New York’s short-term rental rules came just days before the mayoral election, when the company backed a City Council bill that would have allowed owners of one- and two-family homes to host short-term rentals without being physically present. The New York Post reported that Airbnb viewed this as a last opportunity to soften what it calls a “de facto ban” created by Local Law 18.
However, since Mamdani’s victory, there have been no new public moves from Airbnb, no renewed legislative attempts, and no indication from the mayor-elect’s transition team that Local Law 18 will be revisited. If anything, Airbnb’s lobbying prospects have narrowed: Mamdani openly criticized the city’s proliferation of short-term rentals during the campaign and aligned himself with tenant advocates who view Airbnb activity as a contributor to constrained housing supply. As of mid-November 2025, Airbnb’s pre-election initiative appears stalled, and the political climate suggests that meaningful relaxation of NYC’s short-term rental rules is unlikely in the early Mamdani administration.
Conclusion
Mamdani’s election represents a decisive shift toward stronger tenant protections and continued strict enforcement of NYC’s short-term rental regulations. For investors, this means preparing for a tougher operating environment, both in terms of rent regulation and STR compliance. At the same time, the broader region still offers opportunities: nearby STR-friendly markets such as the Poconos, Catskills, and Hudson Valley continue to attract investors looking for higher yields, clearer regulations, and more predictable enforcement.
We will continue tracking policy changes and market signals under the new administration, and updated insights will be included in future releases of Chalet’s Airbnb Dashboard.
If you’re evaluating Airbnb short-term rentals investments and/or exploring alternatives to investing in New York City, you can connect directly with a Chalet STR specialist for tailored guidance. Completely free of charge.
