By John Q. Hosedrinker 
Contrary to predictions of a mass exodus following Zohran Mamdani’s mayoral victory, the luxury home market in New York City has seen a surge in sales. Data from real estate firms indicates significant increases in sales contracts for properties priced above $4 million in the month following the election. Experts attribute the market’s performance to factors like a robust stock market and record compensation on Wall Street, not to any “Mamdani effect”. Despite some initial hesitations, the anticipated flight of wealthy residents to Florida has not materialized, as the real estate market is still doing very well in New York City.
Read the original article here
Mamdani effect is seeing more people moving to New York, not leaving it, is the core truth emerging from the discussions. The initial reaction to the supposed “Mamdani effect” – a projected exodus from New York – appears to have been vastly overstated, possibly even a fabrication. The real estate market itself offers evidence, with luxury home sales remaining robust, suggesting an influx of affluent individuals.
The notion that wealthy residents are fleeing the city en masse seems to be more of a narrative than a reality. It’s suggested that the motivation behind these claims could be political, with certain groups aiming to discredit the new mayor before his policies have even taken effect. The assumption that policies are driving people out doesn’t seem to hold weight, since no policies have been fully implemented and that process takes time. The reality is that the allure of New York City, with its inherent vibrancy, diverse job market, and myriad opportunities, remains potent.
New York City’s ability to draw people, including the wealthy, isn’t solely tied to any single individual or political event. The city’s intrinsic qualities – its energy, its infrastructure, and its role as an economic hub – are the main factors. Tax incentives, while they do play a role, don’t necessarily drive away the “old money” entrenched in the city’s fabric, as New York is hard to beat for people wanting to take advantage of its economy. Those who do come often become part of the city’s ecosystem and contribute to its ongoing prosperity. It is worth noting the focus in the housing market is luxury homes.
There’s a clear sense that the arguments made by those predicting a mass departure are, at best, premature, and, at worst, deliberately misleading. The fear-mongering about rising taxes leading to an exodus doesn’t fully account for the various reasons people choose to live in New York, which are bigger than a single election. The city’s fundamental appeal lies in its opportunities and cultural landscape. People from different ideologies will seek the opportunities. The data suggests that people are continuing to move into the city, even as these stories of departures continue to circulate.
The claim that people are moving because of free bus tickets seems absurd, especially when linked to luxury home purchases. Ultimately, it’s not really about the mayor. It’s about New York being New York. The city’s appeal remains strong, and those who can afford to live there will continue to contribute to its growth.
The situation mirrors the economic realities of the country. Many people, particularly those in areas experiencing economic hardship, are drawn to the cities for jobs and new opportunities. This suggests that the cities are rebounding, and the trend will likely accelerate as people pursue job opportunities in these cities. This trend may even accelerate with the current economic climate, as cities generally offer a higher concentration of job opportunities. The article concludes that it doesn’t matter what you claim, the rich and the poor are moving in.