The election of socialist mayor Zohran Mamdani in New York City is sending ripples through the Connecticut property market, as wealthy New Yorkers rush to secure spacious suburban homes before his proposed tax hikes take effect.
Real estate agents are calling it the “Mamdani effect.”
In Greenwich, a $2.4 million waterside home recently sold for $2.96 million—just five days after hitting the market—illustrating the frenzy taking hold along Connecticut’s affluent coast.
Why Mamdani’s Policies Are Sparking Concern
Mamdani, 32, campaigned as a democratic socialist with a focus on affordability, promising initiatives like rent freezes, universal child care, government-run grocery stores, and a higher minimum wage.
But what really worries the wealthy is his plan to increase taxes on incomes over $1 million by 2 percent, pushing the top city-state rate to roughly 16.8 percent.
He also wants to raise the corporate tax rate from 7.25 percent to 11.5 percent, which could generate billions annually.
While Mamdani insists his policies won’t make living in New York more expensive, economists aren’t so sure.
Realtors See a Spike in Interest
Marilyn Profit, a Coldwell Banker agent in Connecticut, said she’s fielding more calls than ever from anxious New Yorkers.
“Even the agents are noticing an uptick,” she told WFSB.
“People are broadening their searches across the state, not just sticking to Norwalk or Stamford anymore.”
Michelle Griffith, a luxury agent at Douglas Elliman, echoed the trend but noted that the broader real estate market is still stable.
“A handful of buyers moving or buying second homes doesn’t equal a structural hit to NYC real estate,” she explained.
Suburban Hotspots Are Booming
Southern Fairfield County has long been a magnet for wealthy New Yorkers seeking suburban space while staying close to the city.
But the frenzy is now spreading to towns further afield. Marcus Santore of Martin Santore Realty reported a surge in interest for a $1.4 million listing in Litchfield, west of Hartford.
“I’ve had more action in one week than in the past three months, and the buyers are coming from New York,” he said.
Realtor.com’s October Housing Report confirms that while the national market has cooled, suburban pockets like Greenwich are red-hot, with homes selling hundreds of thousands over asking price.
The Politics Behind the Moves
Some buyers are motivated directly by Mamdani’s policies, while others see an opportunity to invest in suburban homes or enjoy more space.
Jennifer Crowley, another Douglas Elliman broker, emphasized that inventory shortages and high-demand “trophy properties” are driving competition.
Barry Sternlicht, CEO of Starwood Capital Group, even suggested the day after Mamdani’s win that the firm might consider relocating from New York.
Yet Daniel Ickowicz of Elite International Realty cautioned that mass exodus fears are likely overstated.
“Intentions are cheap, but moves are costly,” he said.
Many leaving will likely be small- or mid-size business owners, remote workers, or already mobile buyers.
Connecticut’s Real Estate Market Holds Strong
Connecticut’s coastal towns—Greenwich, New Canaan, Darien, and Westport—remain the primary beneficiaries of New Yorkers’ search for space, affordability, and political peace of mind.
But experts stress that the state’s real estate boom is more nuanced than a simple flight from NYC. Demand is growing, yes, but it’s also about suburban lifestyle, school districts, and long-term investment potential.
The so-called “Mamdani effect” may be headline-grabbing, but Connecticut brokers are keeping a level head: for now, it’s a mix of opportunistic buyers, political caution, and a continued appeal of suburban living just outside New York City.
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