A larger socialist bloc is headed to Albany, setting up fresh fights over real estate policy.
The Legislature’s Democratic Socialists of America caucus is poised to grow from nine members to at least 15, with another seat still too close to call in Syracuse, after Tuesday’s Democratic primaries. The gains fall well short of giving the DSA control of Albany, but they will give the organization a louder voice in the debate over New York’s housing agenda.
Real estate leaders expect the caucus to push harder for expanded rent regulation, stronger tenant protections and more investment in social housing, reviving proposals the industry has spent years fighting. Trade groups and lobbyists say they’re preparing to play defense on left-leaning bills, including those that would make it easier for municipalities outside New York City to adopt rent stabilization, create commercial rent control in the boroughs and bar landlords whose properties have code violations from pursuing evictions or buying additional properties.
Still, few expect a repeat of 2019, when Democrats enacted sweeping changes to New York’s rent laws. The DSA remains a minority in the 63-seat Senate and 150-seat Assembly, leaving any major housing bills dependent on the broader Democratic majority and Gov. Kathy Hochul.
“They are a very important, much larger voice to consider on issues — there’s no question,” said Jay Martin, vice president of the New York Apartment Association. “Do they have the power to set the agenda? No.”
One bill where additional DSA support could prove decisive is the Rent Emergency Stabilization for Tenants Act, or REST Act, which would enable the rent stabilization expansion outside of the city. The proposal picked up significant momentum last session, and Martin argued that it’s “almost foregone” that the measure will earn the votes it needs to pass next year. Though it’s unclear if Hochul would sign the legislation.
One of the REST Act’s most vocal opponents, the state-wide property owner coalition Homeowners for an Affordable New York, declined to comment on the bill’s odds or its strategy for next session.
Political pundits argue that the DSA’s rise could also push more Democrats to embrace the organization’s agenda — on housing and beyond — as lawmakers look to avoid drawing a primary challenge from the party’s left flank.
“If the Democrats feel threatened, they’ll work with anybody,” said veteran Democratic strategist Hank Sheinkopf. “It’s going to be a new day because the DSA is louder than everybody else. They know how to use the bully pulpit.”
Spending political capital on defense could leave industry groups with less room to push their own agenda, from advocating for vacancy control changes and insurance cost reforms to a revamp of the 485x tax abatement, among other issues.
Two lobbyists who represent real estate clients, who requested anonymity to speak candidly, said the industry is increasingly uneasy but remains in wait-and-see mode over how much power the expanded bloc will actually wield. “Everything is in flux,” said one of the people.
In a tactful statement, the Real Estate Board of New York President James Whelan said that the organization is “prepared to engage with elected officials focused on increasing housing opportunities, creating jobs and strengthening New York’s economy.”
On a more optimistic note, Slate Property Group principal David Schwartz said he hopes the new faces in Albany will push for more funding and cost-curbing initiatives to build affordable housing and expanded rental assistance, which helps support vulnerable New Yorkers while stabilizing landlord revenue.
“There’s a mandate from the voters to fix affordable housing,” said Schwartz. “We’re going to have to get creative.”
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