Socialist mayor Zohran Mamdani’s election has turned the property market in neighboring Connecticut feral, with wealthy New Yorkers desperate to escape his planned taxation regime and secure multimillion-dollar mansions.
In one instance, a $2.4 million home in the waterside suburb of Greenwich sold for $2.96 million in just five days.
The sale typifies what real estate agents are referring to as the ‘Mamdani effect’ as shaken New Yorkers flee to Connecticut‘s picturesque suburbs.
Mamdani, who has claimed he is a ‘democratic socialist’, ran on an affordability agenda that included freezing rents, raising the minimum wage, implementing government-run grocery stores, and universal child care.
But what the wealthy are most afraid of is his proposed two per cent increase in taxes on incomes over $1 million, which would lift the top marginal city-state rate to approximately 16.8 percent, which Mamdani claims will generate about $4 billion in revenue a year.
The mayor also wants to increase the corporate tax rate from 7.25 percent to 11.5 percent to generate about $5 billion a year.
The mayor-elect has repeatedly claimed his policies won’t raise the cost of living for New Yorkers; however, most economists disagree.
Marilyn Profit, a Coldwell Banker real estate agent, told Connecticut CBS affiliate WFSB that she’s received an uptick in calls from ‘very concerned’ New Yorkers looking to relocate to the neighboring state.
Zohran Mamdani and New York City Police Commissioner Jessica Tisch (left) walk to the New York City Police Memorial on November 19
‘Even the agents are saying the same thing, that they’re seeing more of an uptick in calls for New Yorkers wanting to buy in Connecticut,’ she said.
Profit also noted that, typically, New Yorkers flee to affluent neighborhoods along the coast near the city, but recently, there’s been interest across the state.
‘Normally, they have a targeted area that they’re looking in, whether it’s Norwalk or Stamford or New Haven or Bridgeport, but now they’re broadening their areas of location, just trying to find something decent.’
Michelle Griffith, a luxury real estate agent at Douglas Elliman, told the Daily Mail that she’s also seen interest from New York buyers looking at Connecticut markets, and local brokers have seen increased traffic to the state.
Some agents predicted a mass exodus of wealthy New Yorkers fleeing the city for suburban life in towns like Greenwich, Connecticut (pictured)
Greenwich has emerged as a hotspot for city dwellers, with real estate agents reporting a recent uptick in interest
However, she cautioned that the story is more nuanced, noting that city planning data shows consistent year-over-year population growth.
‘Put simply, a handful of buyers reassessing options or wealthier New Yorkers buying second homes in Connecticut, is not the same as a structural hit to NYC real estate,’ Griffith added.
Southern Fairfield County has long attracted wealthy New Yorkers looking to start families in the suburbs while staying close to the city.
However, Marcus Santore, a realtor for Martin Santore Realty LLC, echoed Profit’s sentiment that interest has expanded to areas further from New York.
He told WFSB that he’s currently working on a $1.4 million listing in Litchfield, a small town west of Hartford.
‘I’ve had more action on it in the last week than I’ve had in the past three months, including negotiating an offer on the property, and the buyers do come from New York.’
Recent data shows that buyers are looking to relocate to suburban areas, with Realtor.com’s October housing report concluding that, although the national market has cooled, suburban pockets are hot.
Contracts in the affluent coastal suburb of Greenwich have ‘gone up sharply’ over recent weeks, Compass luxury real estate agent Mark Pruner told the website this month.
Real estate agents have cautioned against exaggerations, noting that some new Connecticut residents have moved for non-political reasons (Pictured: Greenwich, Connecticut) (file photo)
Pruner told the outlet that several listings sold hundreds of thousands over asking price, including a $2.4 million home that sold for $2.96 million in just five days.
Jennifer Crowley, a real estate broker in Connecticut, also with Douglas Elliman, noted that agents in the state have received calls from New Yorkers exploring their options, but haven’t seen a drastic uptick in interest.
‘Prior to the election, there were some buyers that did cite concerns with what they “anticipated” the outcome of the NYC election to be and made the move months prior or are in contract now,’ she told the Daily Mail.
‘Limited inventory in many CT markets is a major challenge for any current buyer; bidding wars are occurring as buyers outpace sellers. And for trophy properties, buyers want that specific property.’
Crowley explained that New York politics can affect the Connecticut market, particularly in high-income areas like Greenwich, New Canaan, Darien and Westport.
Mamdani’s progressive polices, like freezing rents, raising the minimum wage, implementing government-run grocery stores and universal child care, have caused some concerns over the cost of living in New York
Wealthy New Yorkers threatened to leave the city and take their businesses elsewhere, including Barry Sternlicht, chairman and CEO of Starwood Capital Group
She noted that some buyers may relocate to avoid concerns over potential tax increases, but that these suburban areas offer more room and affordable housing, which has been a constant driver of migration.
Freshly after Mamdani’s win, many of New York’s elite threatened to leave the city, including Barry Sternlicht, chairman and CEO of Starwood Capital Group.
Sternlicht, a billionaire real estate investor, told CNBC the day after Mamdani was elected that Starwood Capital was considering vacating its Manhattan offices.
However, Daniel Ickowicz, the CEO of Elite International Realty, told the Daily Mail that he didn’t anticipate a mass exodus of wealthy New Yorkers moving out of the city.
‘We must understand that there’s a big gap between feeling frustrated after an election and people actually packing a home, changing schools, and relocating a business. Intentions are cheap, but moves are costly,’ Ickowicz said.
He added that people moving out of New York are likely buyers who were already on the fence about staying in the city, small- and mid-size owners, remote-eligible professionals or landlords who are tired of the uncertain political landscape.
