Starwood Capital Considers Leaving New York After Political Changes
Barry Sternlicht, founder and head of Starwood Capital Group, stated that the company may consider leaving New York following recent political developments. In an interview with CNBC (source), he expressed concern about the potential impact of new city policies on the business environment and real estate market.
Sternlicht warned that proposed measures — including stronger tenant protections, possible rent-growth restrictions, and regulatory involvement in development projects — could discourage investment and reduce housing supply in a city already facing affordability challenges.
He also highlighted rising construction costs and the role of unions, noting that combined regulatory and cost pressures make operating in New York increasingly difficult. In addition, he cited public safety and quality-of-life concerns as factors that could prompt residents and businesses to leave.
New York has long attracted institutional investors and experienced sustained rental demand, yet policy changes aimed at enhancing tenant protections have sparked mixed reactions — with supporters emphasizing affordability and investors warning of long-term economic consequences.
Whether these measures will be fully implemented remains to be seen. Sternlicht’s comments underscore growing tensions between policymakers and investors and highlight the delicate balance between tenant protection and maintaining investor confidence in one of the world's largest real estate markets.
