By John Q. Hosedrinker 
At CNBC’s Delivering Alpha conference, RXR CEO Scott Rechler and Rudin Management Co-Chairman Bill Rudin discussed the real estate market in New York City post-election. Despite concerns surrounding Mayor-elect Zohran Mamdani, the executives reported record levels of office leasing and ongoing investments, including a new building project by Ken Griffin. While acknowledging potential risks with the new administration, particularly regarding overseas investor sentiment, Rechler and Rudin expressed optimism, citing the city’s resilience and a need to attract young talent. Both executives emphasized the importance of collaboration between the public and private sectors to address housing affordability and other critical issues, with a focus on working with the mayor.
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No one leaving New York City because of Mamdani, say two top real estate CEOs. This seems to be the resounding sentiment, and honestly, it’s not surprising. The whole idea that the wealthy are poised to abandon the city at the slightest hint of increased taxes or progressive policies has been a persistent narrative, peddled by some for what seems like ages. And yet, here we are.
The reality, as anyone who has been paying attention knows, is that New York City remains a highly desirable place to live, especially for those with considerable means. It’s a global hub, a center of culture, finance, and opportunity. To suggest that a slightly higher tax rate is going to send these individuals packing is simply ignoring the value they place on what the city offers. They aren’t there for the savings; they’re there for the experience.
Even if we entertain the notion that some wealthy individuals are considering a move, the argument that it will decimate the city is flawed. The constant churn of capitalism ensures that for every person who leaves, there’s likely someone else waiting to take their place, eager to be a part of the city’s vibrant ecosystem. The economic mobility that capitalism supposedly champions should, in theory, support this idea.
Furthermore, the threats of fleeing New York often feel like a performative tactic. Billionaires have the financial freedom to live virtually anywhere. They’re not going to move to a less exciting location, just to save a few bucks. Living in a dynamic metropolis like New York is part of the appeal of being wealthy. If you’re Uber rich, you have to operate in cities like NYC, while simultaneously hiding wealth in tax havens.
There’s a clear pattern here. These predictions of mass exodus have been made repeatedly, and the city continues to thrive. New York City keeps reinventing itself, no matter what politicians say. The evidence is clear: the number of wealthy individuals in the city has, in fact, increased over time, not decreased.
The notion of the wealthy departing due to policy changes is a classic tactic. They use it to try to influence policy decisions, but the truth is, these threats are mostly empty. They want to maintain their financial advantage and aren’t afraid of whining and crying to do it. These individuals often own multiple properties and are used to living in different locations. They are more than able to work the system.
Also, let’s be honest, where else would they even go? If you’re wealthy in the US, you have limited options: New York City or Los Angeles.
Ultimately, the threats of leaving are just that: threats. The idea is to maintain their wealth in a competitive environment where the only goal is profitability. They want to enjoy the benefits of a city like New York without contributing financially. You might see some shift their primary residence to states like Florida, but they’re still benefiting from the connections and business opportunities New York provides.
In conclusion, the two top real estate CEOs are correct in their assessment. The idea that Mamdani or any other progressive politician is going to trigger an mass exodus of the wealthy from New York City is a myth. The city offers too much, and the wealthy will continue to find ways to thrive within its vibrant landscape.