NYC Landlords Blast Mayor Mamdani’s “Last Resort” Property Tax Hike

NEW YORK CITY — Real estate leaders and property owners have issued a blistering response to Mayor Zohran Mamdani’s preliminary budget proposal, which includes a 9.5% citywide property tax increase. The move, which Mamdani framed as a “last resort” to close a $5.4 billion budget gap, has drawn immediate fire from advocates for affordable housing and small property owners alike.+1

The New York Apartment Association (NYAA), representing a massive coalition of multifamily housing providers, led the charge against the proposal on Wednesday, February 18, 2026.

“A War on Immigrant Owners”

Landlord associations argue that the increase would be catastrophic for the city’s already fragile housing stock, particularly rent-stabilized buildings.

• The Bankruptcy Warning: Kenny Burgos, CEO of the NYAA, noted that roughly one-third of rent-regulated housing is currently struggling. “This proposal, coupled with Mamdani’s pledge to freeze rents for four years, virtually guarantees the physical destruction of tens of thousands of units,” Burgos said.
• Impact on Small Owners: Ann Korchak, board president of Small Property Owners of New York, called the proposal a “war on immigrant property owners,” many of whom are multigenerational families with their life savings tied to small buildings.
• The “Piggy Bank” Allegation: Critics accused the mayor of using the city’s largest stock of affordable housing as a “piggy bank” to fund his progressive agenda while failing to deliver on campaign promises of structural property tax reform.

The Mayor’s Gambit: Tax the Rich or Tax the Land

Mamdani, a self-proclaimed Democratic Socialist who took office on January 1, 2026, has positioned the 9.5% hike as a fallback plan intended to pressure Governor Kathy Hochul and state lawmakers.

1. Path A (Preferred): Raising income taxes on New Yorkers earning more than $1 million and increasing corporate taxes.
2. Path B (The Hike): If Path A is blocked by Albany, the city would move forward with the 9.5% property tax increase—the first major hike since 2003—expected to generate $3.7 billion annually.

“This is something that we do not want to do, and this is something that we are going to utilize every single option to ensure it does not come to pass.” — Mayor Zohran Mamdani, Feb 17, 2026

Opposition from Albany and City Council

The proposal faces a steep uphill battle in both the state capital and at City Hall:

• Governor Hochul: Currently seeking reelection, the Governor stated she is “not supportive” of the property tax increase, though she has also ruled out Mamdani’s proposed income tax hikes on the wealthy.
• City Council Speaker Julie Menin: In a joint statement with Finance Chair Linda Lee, Menin blasted the plan, stating that significant property tax increases “should not be on the table whatsoever” while New Yorkers face an affordability crisis.

The Proposed Tax Impact

According to the Citizens Budget Commission, the typical owner of a one- to three-family home would see their annual bill increase by approximately $700.