Rent Freeze Fallout Looms Over City Mortgage Bonds The New York City rent freeze, aimed at making the housing market more affordable, is set to hit mortgage bond investors who bet big on rental income.
The $506 million gamble has already soured for some of these bondholders, and Mayor Zohran Mamdani's decision may be the final blow.
The city's plan to freeze rents at current levels exacerbates a problem created by investors who staked their fortunes on rent stabilized apartments.