Critics Pan Zohranomics as Unrealistic Solution to NYC Housing Crisis
Critics Pan Zohranomics as Unrealistic Solution to NYC Housing Crisis
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July 9, 2025 | New York City
In a sharp critique of New York City mayoral hopeful Zohran Mamdani’s housing agenda, The Real Deal breaks down why economists and analysts view his proposal—a rent freeze paired with the construction of 200,000 union-built affordable homes—as more political theater than viable policy. Economist Isabella Weber lent support to the concept in a New Yorker piece, claiming the rent freeze would work if coupled with a significant affordable housing buildout.
However, critics point out that Mamdani’s plan hinges on assumptions that defy New York City’s fiscal and development realities. For one, the city has never built affordable housing at the proposed scale, especially not at the candidate’s claimed cost of $500,000 per unit. With union labor costs pushing that figure closer to $1 million per unit, and no legal pathway for Mamdani to borrow the $70 billion needed, the plan is widely seen as unworkable.
Moreover, experts warn that a rent freeze could damage the city’s rental housing stock, push landlords into financial distress, and chill private development at a time when housing supply is already critically low. The piece likens Mamdani’s logic to committing to a “Krispy Kreme diet” today with vague plans to start exercising “10 hours a day” years from now.
While Weber and Mamdani claim their agenda fights economic insecurity and rising fascism through leftist mobilization, The Real Deal concludes the plan's appeal is rooted more in political rhetoric than sound economic planning.
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