Ackman says Mamdani right to address affordability but has wrong solution to NYC housing issue

Core Viewpoint - Billionaire investor Bill Ackman acknowledges the importance of addressing New York City's housing affordability crisis but criticizes Mayor-elect Zohran Mamdani's proposed plan as misguided [1][4]. Group 1: Housing Affordability Crisis - Mamdani's election platform focuses on making New York City more affordable, particularly through housing initiatives [2]. - Ackman emphasizes that increasing housing supply is essential to lowering rents, contrary to Mamdani's approach of reducing supply [1][4]. Group 2: Proposed Housing Plan - Mamdani's plan includes a $100 billion, decade-long initiative to build affordable housing and freeze rents on rent-stabilized units, which Ackman argues would discourage development and worsen the housing shortage [4][8]. - Ackman cites empirical data from other cities, indicating that increased construction leads to lower rents, suggesting that market-rate apartments can alleviate pressure on older units [4][6]. Group 3: Impact on Real Estate Development - Ackman warns that freezing rents sends a negative signal to real estate developers, making them less likely to invest in new construction [9]. - He argues that new apartment developments can actually reduce rents on older units, thereby enhancing overall affordability in the housing market [6][8].