Ackman says Mamdani ‘right on problem, wrong on fix’ in NYC housing debate

Billionaire investor Bill Ackman announced on Wednesday the election of New York City mayor Zahran Mamdani It is correct for him to focus on the city’s housing affordability crisis, although his proposed plan to address this crisis is largely misguided.

“I give Mamdani credit for identifying a very important issue, which is affordability. And I give him a lot of credit for his approach to solving the problem,” Ackman said during an exclusive interview on “Mornings with Maria.”

“The way to lower rents is to increase supply, not reduce supply,” Ackman explained.

Progressive voice from Queens, Zahran Mamdani, won an award November 4 elections To lead the nation’s largest city on a platform centered around making New York less affordable.

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The Pershing Square chief said Mamdani’s proposal, which calls for a $100 billion program over a decade to build rent-stabilized and affordable housing and freeze rents across the city, would discourage development and ultimately exacerbate the city’s housing shortage.

“There’s a lot of empirical data that we’re seeing in cities across the country, in Austin and the Southeast and other places where there’s been a big boom in apartment construction and the result is lower rents,” Ackman said.

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He pointed to evidence showing that even market-rate construction can lower costs in the housing market by relieving pressure on older units.

“You can build a lot of market-rate apartments, brand new apartments,” Ackman explained, adding that new apartments “actually lower rents on older apartment stock, which creates more affordability.”

The Brownstone Apartments in Manhattan, New York City, on July 6, 2024. (Beta Zorzel/Noor Photo/Getty Images)

He said Mamdani’s proposal to freeze rents would hinder construction and make it difficult to expand the city’s housing stock.

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“When you send a message that you’re going to freeze rents, that’s not inspiring to developers. They’re not going to pull out a shovel and build anything in that environment.”

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The comments also tie into Ackman’s broader push on housing issues. A day earlier, he used a live broadcast on X to outline a three-part plan that he said would help the Trump administration achieve its goals for Fannie Mae and Freddie Mac.

Duo Mortgage companies It has been under federal custody since the 2008 financial crisis.

Ackman’s announcement comes as the Trump administration explores new ways to make housing more affordable, including a proposed 50-year mortgage, even as critics warn that such measures could saddle borrowers with more long-term debt.