New York City Mayor Zohran Mamdani is receiving criticism regarding housing affordability as rents in Manhattan and Brooklyn reach record highs. According to an analysis by the Corcoran Group, the median rents in Manhattan and Brooklyn were $5,295 and $4,350, respectively, in June. Approximately 38% of New Yorkers were born outside the United States, with around 40% of rentals occupied by foreign-born individuals, although the data does not specify legal status.
Conservative commentators attribute the rising rents to increased demand from immigration. Radio host Andrew Wilkow stated that the mayor's designation of New York as a 'sanctuary city' has contributed to housing shortages. A 2003 paper from the Federal Reserve Bank of Philadelphia indicated that immigration correlates with increased rents and housing values, while a more recent study from the Federal Reserve Bank of Dallas found that a 1% increase in illegal immigrants corresponds to a 1.4% rise in rental prices due to insufficient housing development.
Rep. Brandon Gill of Texas remarked that young Americans are competing for housing against millions of foreign arrivals. Data from the New York City Housing and Vacancy Survey shows that the share of renter households associated with foreign-born New Yorkers increased from 37% to 40% between 2020 and 2023.
In response to the rising rents, New York City Comptroller Mark Levine suggested that the city should rezone areas to allow for more housing construction and invest in affordable housing. Conservative lawyer Mike Davis criticized Levine's recommendations, suggesting deportation of illegal immigrants as a solution.
The White House has claimed that declining rental costs in the South and Southwest are a result of deportations, a claim that has faced skepticism. A March 2024 academic study indicated that deportations might increase overall housing prices by negatively impacting the construction industry.
Mamdani campaigned on addressing the housing crisis by freezing rent increases for rent-stabilized tenants and aiming to build 200,000 new affordable homes. He has implemented a rent freeze on rent-stabilized leases and released a housing plan targeting the construction and preservation of 400,000 affordable homes. Critics argue that rent freezes may lead to higher prices for others and discourage property owners from maintaining their units. Mamdani's office did not provide a comment when contacted.