In the heart of New York City, an affordability crisis has reached critical levels. Households typically allocate more than half their income towards rent, while every night, approximately 100,000 residents find themselves in homeless shelters. Manhattan Borough President Mark Levine recently characterized these conditions as "what a full-blown affordability crisis looks like." Median rents in Manhattan now exceed $5,400 monthly, highlighting the severe housing challenge in one of the world’s most expensive urban centers.
The city’s cost-of-living pressures extend well beyond housing; food insecurity affects about 1.4 million people, representing 15% of the population. Child care is another significant burden, with Census Bureau data indicating that a family must earn roughly $334,000 annually to afford care for a two-year-old child in New York.
Zohran Mamdani, freshly elected as New York City’s mayor, won by the largest margin of any candidate in six decades, propelled by his emphasis on improving conditions for the working class. However, his ambitions to alleviate the affordability crisis face the reality of a slowing local economy, diminishing federal social safety nets, and an expanding city budget deficit.
Among Mamdani’s key promises are initiatives to freeze rents on nearly one million rent-stabilized apartments—almost half of the city’s rental housing stock—and to construct 200,000 new affordable homes targeting low- and moderate-income families with permanent government subsidies. Additionally, he seeks to institute universal free childcare for children aged six weeks to five years and eliminate fares on all city buses.
Despite these commitments, several challenges complicate their implementation. Operators of subsidized housing report rising costs: since 2020, expenses associated with rent-stabilized apartments have increased by 22%, while rents have grown by only roughly 11%. Escalating utility, insurance, and labor expenses without an equivalent recovery in rental income risk leading to property deterioration. Likewise, some affordable housing developers face the threat of default, signaling financial strains within this sector.
Mamdani’s plan to make bus travel free has encountered resistance from state-level officials. New York Governor Kathy Hochul has publicly expressed skepticism about eliminating fares across the city’s bus network, citing concerns about replacing an estimated $1 billion in lost Metropolitan Transportation Authority (MTA) revenue.
Financing these ambitious programs hinges on the ability to raise taxes on the city’s wealthiest individuals and corporations. Securing such changes requires state approval, making Mamdani’s agenda heavily dependent on political negotiations beyond city hall.
Experts note that continued grassroots organizing is vital for advancing the mayor’s priorities. Kim Phillips-Fein, a history professor at Columbia University, emphasizes that Mamdani’s electoral success was rooted in substantial political mobilization, and sustaining that energy will be critical for overcoming legislative hurdles at both the city and state levels. To this end, Mamdani’s allies have established a nonprofit to advocate for his agenda in Albany and within the city government.
While some opponents predicted an exodus of the city’s wealthiest residents and a financial crisis reminiscent of New York’s 1970s collapse, current conditions differ significantly. The modern economy exhibits stronger labor force participation, record-high tax revenues, and office leasing rates nearing pre-pandemic levels. However, early indicators of economic strain are emerging: job growth has slowed, with an estimated 78,000 fewer jobs added in 2025 compared to the previous year, concentrated primarily in low-wage sectors such as home health care. Furthermore, the city faces a projected $6.5 billion budget gap in 2027 that by law must be addressed; larger shortfalls may lie ahead.
Mamdani’s approach to combating the cost-of-living crisis draws historical parallels to Mayor Fiorello La Guardia’s leadership during the Great Depression. However, the current federal landscape poses distinct challenges. While La Guardia benefited from a supportive White House and Congress that enacted New Deal-era spending, Mamdani operates amid federal budget cuts to key social programs including Medicaid and SNAP under a Republican-controlled Congress and a president often seen as unfriendly to urban interests.
State estimates indicate sweeping reductions resulting from recent federal policy changes, including 1.5 million New Yorkers potentially losing health insurance coverage, 300,000 households facing diminished SNAP benefits, $13 billion in cuts to the health care system, and associated job losses. Additionally, the city confronts withheld federal transit funding amounting to $18 billion, complicating infrastructure investments.
Despite these headwinds, Mamdani remains optimistic about fostering collaborative relationships with federal authorities to advance affordability initiatives. Following his November meeting with the president, he expressed hope for a partnership aimed at reducing living costs for New Yorkers.
Ultimately, Mamdani’s tenure will require navigating a complex matrix of economic pressures, fiscal realities, political negotiations, and the imperative to maintain vigorous public support. The stakes are high as he seeks to steer New York City toward a more equitable and affordable future.