Trump criticizes New York City rent freeze, warns buildings will become ‘ghettos and slums’

WASHINGTON, DC: President Donald Trump on Friday, June 26, sharply criticized New York City's newly approved rent freeze, warning that the policy would lead to deteriorating housing conditions and drive residents out of the city.

 Speaking at the Faith and Freedom Coalition policy conference in Washington, Trump said the decision amounted to the confiscation of landlords' property and argued it would have broader consequences if adopted elsewhere. His remarks came one day after New York City's Rent Guidelines Board approved a historic freeze on rent-stabilized apartments.

Trump criticizes rent freeze, warns of wider consequences

During his address, Trump focused on the Rent Guidelines Board's unprecedented decision to approve no rent increases for eligible rent-stabilized apartments, contrasting it with previous years when landlords were typically granted at least modest increases.

"For the first time in history, the powerful Rent Stabilization Board... just came out, first time with a ruling, zero rent increases for landlords. Zero for the next two years, even though energy supplies, real estate taxes, and just about everything else have gone up," Trump said.

He argued that property owners would be unable to absorb rising operating costs under the policy. "They're basically confiscating their property," Trump said, adding that the board's lone landlord representative "walked off in disgust."

Trump also referred to New York City Mayor Zohran Mamdani, saying, "Mayor Mamdani, who came to the White House and seems like a nice guy. But he said he was going to do this in his campaign. Nobody thought he was serious."

Warning about the potential impact of the policy, Trump said, "But what the mayor doesn't say is that these buildings will soon turn into ghettos and slums, and that everybody will continue leaving New York." He further argued that if similar policies spread nationwide, "the country itself will be taken down. It will be Third World, strictly Third World."

Trump also used the issue to encourage political participation ahead of the midterm elections, telling supporters, "Everyone needs to get out and vote in the midterms. We have to win this election. This election is very vital."

Board approves first-ever freeze on one-and two-year rent-stabilized leases

Trump's comments followed Thursday, June 25, vote by the New York City Rent Guidelines Board, which approved a 7-1 decision to freeze rents on both one-year and two-year leases covering roughly one million rent-stabilized apartments across the city. The freeze will apply to leases signed beginning in October and is expected to affect approximately two million tenants.

The measure fulfills a central campaign pledge by Mayor Zohran Mamdani, who has advocated freezing rents as part of his broader affordability agenda. In a statement following the vote, Mamdani called the decision "a historic victory for New York City tenants."

"After reviewing the data and hearing from New Yorkers across the city, the independent RGB has delivered a freeze on one-year leases, and the first-ever freeze on two-year leases in our city's history. This is the relief that working people across our city deserve," he said.