by InRealEstate 
Progressive Promises Meet the Reality of Urban Governance
Zohran Mamdani, the democratic socialist who won the Democratic primary in an upset last June, is the clear front-runner to become the next mayor of New York City. His agenda—including rent controls, increased corporate taxes, and more government involvement in housing development—has created what a number of real estate investors and business leaders view as an existential crisis for the nation’s financial center .
Yet Mamdani is hardly the first big-city candidate to champion sweeping housing reforms and tax policy shifts aimed at improving equity. In recent years, both Chicago and Los Angeles elected progressive mayors over the objections of entrenched business interests. As their early tenures have shown, translating campaign rhetoric into tangible policy change is often more elusive than anticipated . Promises to overhaul housing markets and reconfigure municipal tax structures have met resistance—not only from political opponents but from the complex realities of urban governance itself.
History shows that, though mayors can accomplish much in even a single term, they are unable to act unilaterally . Regardless of their beliefs, mayors need community support and a legislative body to enact change.
Chicago: The Brandon Johnson Experiment
A Progressive Agenda Meets Political Reality
Chicago Mayor Brandon Johnson, a former teacher who won election in 2023 on a left-leaning platform, has discovered that campaign promises do not necessarily translate to concrete policies affecting real estate investors . His efforts to raise real estate and corporate taxes to fund social initiatives have largely failed in the face of active resistance from business advocacy groups and a historically low approval rating.
The Protecting Renters Ordinance
Johnson is currently pushing the most significant housing legislation of his tenure, the “Protecting Renters Ordinance,” which would create a citywide rental registry, cap security deposits at one month’s rent, ban move-in fees, and establish a Bureau of Rental Housing Services to enforce tenants’ rights . The measure would also require “just cause” for evictions or lease non-renewals, with landlords potentially required to pay relocation assistance of up to five months’ rent for certain displacements .
Landlord-backed groups have organized fierce opposition. Michael Glasser, president of the Neighborhood Building Owners Alliance, called the measure “extremely problematical” and warned it would put small and midsize landlords “through the ringer of bureaucracy” . The Chicago Association of Realtors warned the ordinance risks “unintended consequences that could reduce housing availability, discourage neighborhood investment and increase costs for renters” .
High-Profile Defeats
Johnson’s most visible setback was the “Bring Chicago Home” initiative, which would have more than tripled the transfer tax on commercial property and home sales exceeding $1 million to address homelessness. Opponents, led by BOMA/Chicago, mounted a public campaign against the ballot measure, arguing the city already had the second-highest commercial property taxes in the nation . While the City Council approved a referendum, a Cook County judge initially blocked it, and when the issue finally reached voters in March 2024, the referendum was soundly rejected .
Johnson’s pledge to stop property tax increases also proved unsustainable. In late 2024, he proposed a $300 million property tax hike, which the City Council rejected 50-0 . Earlier this year, he floated a corporate head tax of $3 per worker each month to fill a budget gap—a proposal met with immediate opposition from Illinois Gov. JB Pritzker, council members, and the Chicagoland Chamber of Commerce .
A Partial Win for Developers
Despite these defeats, Johnson has gained some traction on one issue: supporting conversions of outdated office towers on and around LaSalle Street into apartments, a plan initially pitched by his predecessor. The first project, a partial conversion of 79 W. Monroe St. into 117 units, is already underway, with plans setting aside at least 30% of units as affordable .
Los Angeles: Karen Bass and the Mansion Tax
A Mixed Record on Housing
Los Angeles Mayor Karen Bass, elected in 2022, has faced a challenging relationship with the commercial real estate community. While she has earned praise for streamlining the city’s notoriously slow permitting process through Executive Directive 1 and SB79, some developers say she has failed to reverse the city’s reputation as a risky place to invest .
“While she has made strides in addressing needed affordable housing and development bottlenecks, her relationship with the CRE community has been arduous,” said Chris Cooper, principal and regional managing director for Avison Young. “Any positive new progress will depend on how effectively she can balance political priorities with the need for economic growth” .
The Measure ULA Challenge
Bass has faced particular difficulty with Measure ULA, the voter-approved “mansion tax” that imposes a 4% tax on property sales between $5.3 million and $10.6 million and 5.5% on sales above $10.6 million . While Bass did not propose the tax, her administration has been tasked with implementing it. Real estate professionals have blamed the tax for a sharp drop in permits and for driving investors away from Los Angeles .
The tax has generated more than $1.1 billion through 1,500 transactions, and Bass has proposed allocating $360 million to fund 80 affordable housing projects, including 1,528 new units and repairs to more than 2,500 existing affordable homes . However, critics note that commercial properties account for most of the revenue haul, and studies show the tax has suppressed market activity .
Bass has committed to finding a legislative fix to mitigate the tax’s effects. Sean Burton, CEO of multifamily development firm Cityview, said a compromise bill that would have exempted the first 15 years of a project from the tax was “very close” and that Bass has “given her word” to bring it up for consideration .
Permitting Reforms
On the positive side, Bass signed an executive order in April 2026 aimed at overhauling the city’s “fragmented, unpredictable and uncoordinated” permitting process . The order expands pre-approved housing plans, allows AI to expedite permit reviews, connects different agencies under one system, and expands self-certification for commercial permits. The order also delineates timelines for permit review to prevent compounding delays .
Her Executive Directive 1, signed on her first day in office, has resulted in approval of 29,000 affordable housing units—more than the total proposed in 2020, 2021, and 2022 combined . She followed this with ED7, expanding streamlining to mixed-income developments and adaptive reuse projects .
Boston: Michelle Wu’s Balancing Act
Affordable Housing Mandates and Developer Tensions
Boston Mayor Michelle Wu, who cruised to re-election in 2025, has taken a different approach to housing policy. Her administration created Boston’s first new Planning Department in 70 years, raised the minimum affordable housing requirement from 13% to 20% of units in new buildings, and hiked fees on commercial projects to support affordable housing .
These policies have drawn criticism from developers who argue that higher affordability mandates, increased fees, and rent control proposals are making Boston less attractive to investors. Some have paused or scaled back projects, saying the numbers do not work . The city counts more than 20,000 units that have been approved but have not yet started construction, and developers point to Wu’s stricter affordable housing and energy efficiency rules as driving costs upward .
Office-to-Residential Conversions
Wu has found more success with office-to-residential conversions. Her program, launched in 2023, offers developers a 75% tax abatement for 29 years to convert vacant office space into residential units . The program has received 22 applications to convert 1.2 million square feet of office space into 1,517 units, with 236 units currently under construction . Early conversions such as 281 Franklin Street and 263 Summer Street have provided new housing and helped revive street-level retail .
Rent Control Stalled
Wu’s rent control proposal, which would cap annual rent hikes at inflation plus 6% (with a 10% maximum) and exempt new construction for 15 years, passed the City Council but remains stalled at the state level amid strong industry opposition . Wu has said she would vote in support of a rent control ballot question but favors the conditions set in her own, more modest proposal .
Washington, D.C.: The Bowser Model
Business-Friendly Leadership
Commercial real estate leaders around Washington, D.C., have largely supported Mayor Muriel Bowser’s work since she took office in 2015. Bowser has championed tax incentives for office-to-residential conversions, led efforts to revamp corners of the city via recreational projects, and encouraged housing policy reform to speed the sale of multifamily buildings .
“I am pro-development. I always have been,” Bowser told Bisnow in March 2026. “I was a pro-development ANC commissioner, and I’m a pro-growth mayor” .
The RENTAL Act
In 2025, Bowser introduced the RENTAL Act, legislation designed to protect affordable housing and strengthen the housing ecosystem . The act includes provisions to streamline court process timelines, strengthen tenant safety protections, and focus the Tenant Opportunity to Purchase Act (TOPA) on preventing displacement . The legislation was supported by members of the development community, with MRP Realty managing principal Bob Murphy testifying that “the burdens imposed by TOPA combined with unfavorable policies have nearly eliminated institutional investment in new market-rate housing in the District” .
Development Legacy
During Bowser’s tenure, the city has seen more than 73,000 total housing units built, including over 22,000 affordable units . She spearheaded large-scale developments including The Wharf, Walter Reed Army Medical Center, and most recently, the RFK Stadium site, which will bring the Washington Commanders back to the city .
However, D.C.’s development wave has slowed. Construction starts in 2023 and 2024 were the two slowest years during Bowser’s tenure . The city also continues to face challenges from federal job losses, high office vacancy, and limited new construction .
What These Examples Tell Us About a Potential Mamdani Administration
The Limits of Mayoral Power
The experiences of Johnson, Bass, Wu, and Bowser demonstrate that mayors cannot act unilaterally, regardless of their policy ambitions. Each has faced constraints from city councils, state legislatures, business opposition, and voter skepticism. Mamdani, who has faced criticism for supporting challengers to Democratic incumbents, will need to navigate similar political realities .
The Clash Between Rhetoric and Reality
Johnson’s progressive agenda has been significantly blunted by political opposition and institutional constraints. His property tax hike was rejected 50-0, his transfer tax referendum was defeated, and his corporate head tax proposal was met with immediate opposition. Bass has struggled with the unintended consequences of the mansion tax. Wu’s rent control proposal remains stalled. These examples suggest that “the doom and gloom is probably overhyped,” as appraisal firm CEO Jonathan Miller put it .
Areas of Potential Common Ground
Despite their progressive agendas, each mayor has found areas of cooperation with the real estate industry. Johnson supported office conversions. Bass streamlined permitting and sought to mitigate the mansion tax’s effects. Wu created a successful office-to-residential conversion program. Bowser championed tax incentives and pro-development policies. Mamdani’s push for affordability and his political victories suggest “a coalition that is here to stay” , but he will likely need to find similar areas of compromise.
The Investment Climate Question
The most significant concern for real estate professionals is whether Mamdani’s policies will drive capital away from New York. Burton’s observation on Los Angeles is instructive: “The mayor’s biggest job is to be a cheerleader and make businesses feel comfortable expanding in their city. We need to show that we are pro-jobs and going to bring down costs” . How Mamdani addresses these concerns will be critical for the city’s investment climate.
Key Takeaways for Real Estate Professionals
Campaign Promises Are Not Policy: The experiences of progressive mayors across the country demonstrate that translating campaign rhetoric into concrete policy change is often more difficult than anticipated.
Political Constraints Are Real: Mayors need legislative support, community buy-in, and business cooperation to enact meaningful change. The resistance faced by Johnson’s policies in Chicago illustrates the limits of mayoral power .
Finding Common Ground: Even progressive mayors have found areas of cooperation with the real estate industry, particularly around office conversions and permitting reform.
The Investment Climate Matters: Investor confidence depends on a city’s brand and narrative. Mayors must balance political priorities with the need for economic growth .
“The Mayor Matters”: As JLL’s Peter Riguardi said earlier this month, “The mayor matters. I’ve heard too often in our industry … it doesn’t matter who the mayor is. Well, I’m 64 years old, and I’ve witnessed a few mayors, and I can tell you personally that it matters”
