Earlier this month, Zohran Mamdani, the 34-year-old socialist and anti-Israel activist, who has a resume less impressive than most college seniors, won the New York City mayoral race. It was an interesting choice for a city that is the global center for capitalism and home to the largest Jewish population outside of Israel. The consequences of this election will be interesting (and perhaps scary), but instead of sitting back and complaining about the bad policies, I favor a more proactive approach. Below are some financial planning strategies that can put frum families on better financial footing in light of the Mamdani victory:
Mitigating estate taxes on real estate holdings: One asset class that many investors are worried about over the next four years is New York City real estate. While you may be confident in the city’s long-term real estate growth, the Mamdani victory may temporarily drive the price down given his following talking points:
1) Freezing Rent on Stabilized Units: This could disincentivize maintenance and upgrades, as landlords face tighter margins. It could also reduce investor confidence, especially in multifamily housing. It may also push rents higher in non-stabilized units, worsening affordability overall.
2) $100 Billion Public Housing Plan: Mamdani wants to triple the city’s production of publicly subsidized, union-built, rent-stabilized homes, creating 200,000 new units over 10 years. This could be funded by municipal bonds, which may sideline private developers, raising fears that the private sector expertise will be underutilized. It will also cause permitting and construction timelines to slow.
3) Tax Increases on Corporations and High Earners: Mamdani’s platform includes $9 billion in new taxes, which may cause high-net-worth business owners, who are job creators, to leave New York, which will help drive down real estate prices.
4) Defunding the NYPD: While eliminating the New York police department won’t actually happen, a hostile relationship and failure to utilize their service fully may cause the crime rate to go up. Nothing hurts real estate more than a less livable city with rising crime rates.
The good news for large New York City property owners is you may consider moving these assets out of your estate at lower valuations. New York State’s estate tax exemption is $7.16 million for 2025, and it’s expected to adjust slightly for inflation in 2026. Furthermore, in 2025, the lifetime gift and estate tax exemption is $13.99 million per individual. In 2026, it increases to $15 million per individual. This means married couples can shield up to $27.98 million in 2025 or $30 million in 2026 from federal estate and gift taxes. Keep in mind that if your assets are currently above these thresholds, the estate tax liability can be quite onerous. Meet with your estate planning attorney to discuss how you can strategically utilize the lower valuations on your real estate holdings to save you and your heirs from paying estate taxes in the future.
Save on income taxes by setting up home office: Safety concerns in New York City may motivate some folks to set up a home office, which has tax benefits (not to mention the cost savings from not commuting). The home office tax deduction allows individuals to deduct expenses related to the business use of their home, which can potentially save them thousands of dollars annually. The home office deductions typically only apply to self-employed individuals (Schedule C filers), independent contractors and freelancers (1099 income), and S-Corp owners. W-2 employees generally do not qualify under current federal law due to the Tax Cuts and Jobs Act.
Deductions that should be considered include repairs, painting, and furniture for one’s home office. Additionally, there are indirect expenses like rent, utilities, insurance, and depreciation for homeowners prorated by office size relative to the overall home size. It’s imperative to speak to your CPA to ensure that you qualify and that everything is set up correctly.
Move to a more financially sensible location: One of the best financial planning techniques, and one I’ve written about for years, is moving. Deciding to reside in a more cost effective and tax-friendly environment can change the trajectory of your financial life. While I don’t expect a mass exodus of New York City residents, I do believe that it will be a very smart financial planning move for many. A less friendly environment for both business and practicing yiddishkeit may be the final push for some families to make the move they’ve been considering. Places like Florida, Texas, Tennessee, and Ohio are just a few (of many) locations around the country with thriving Jewish communities, more favorable tax and business jurisdictions, and a more affordable cost of living.
If Mamdani has convinced you it’s finally time to leave New York City, this alone can put you and your family in a much more comfortable financial situation. Thank you, Comrade Mamdani!
Redirect charitable contributions to counteract Mamdani anti-Israel agenda: Zohran Mamdani has described the Palestinian cause as “central to my identity,” voiced support for the BDS movement, and criticized Israel’s military actions in Gaza as genocide. He has also said Israel has a right to exist, but only with equal rights for all, rejecting its identity as a Jewish state. These positions are devoid of reality and common sense, so they must be motivated by blind and baseless antisemitism. How else do you fail to mention the approximately 2 million Arabs that are full citizens in Israel, who run businesses, serve in the Knesset, and live freer than anywhere else in the Middle East?
Trying to change the mind of someone who is blinded by hatred is a fool’s errand. Instead, I’d encourage folks to align their charitable dollars with their Zionist values to combat these hateful positions. If you currently give 5% of your tzedakah dollars to Israel, perhaps you should increase that amount to 25%. Looking for causes that are based in New York and support Israel may be particularly worthwhile.
Public markets: The stock market may concern some folks due to its daily fluctuation. The reality is most companies are run by proactive and intelligent management teams who will change jurisdiction out of New York if it becomes too unfavorable. Furthermore, the ability to gain exposure to stocks through diversified vehicles like mutual funds and ETFs minimizes an investor’s exposure to any one geographic region, even if it were to become extremely unfavorable.
My advice on publicly traded markets considering a socialist leader is simple: Ignore the noise and stay the course. As long as you have a portfolio that is customized to your specific goals and time horizon, and are well diversified, you will be fine.
Broader perspective: The two things that don’t help a society with prosperity and progress are socialism and discrimination toward their Jewish population. There is not a single instance in history where either of these philosophies has worked out over the long term. Sadly, New York’s new mayor, and the hundreds of thousands who voted for him, didn’t get the memo.
While I am no longer a New York City resident, there is still concern about having such a radical mayor in close proximity to my home. However, my thoughts on the current situation were echoed in an interview I heard from conservative columnist George Will. He framed Mamdani’s platform, which includes free buses, rent freezes, and public grocery stores, as emblematic of classic socialist promises. Will said: “I want him to win. I think every 20 years or so, we need a conspicuous, confined experiment with socialism so we can crack it up again.” In other words, sometimes we need a taste of socialism to remind us that it is ineffective. Hopefully this four-year reminder can lay the foundation for decades of new leadership focused on things that do make societies great, like safety, innovation, and capitalism.
May the next four years in New York City be peaceful, uneventful, and serve as a constructive learning experience and helpful financial planning opportunity for all residents!