The socialist expropriators are on the march: coming to a blue state city near you.
Their game plan is now set; New York’s socialist mayor Zohran Mamdani has announced his “Block by Block” housing plan “which will force many landlords to hand over their property to corrupt and unaccountable nonprofit organizations.” (Washington Examiner 6/3/2026).
Speaking in Brooklyn on May 26th in his “Fix the City” campaign Mamdani promised to “take aggressive legal action to remove negligent owners and property managers.”
You read that right, “remove” owners and managers from their own properties. The great socialist taking has begun.
Brings to mind the Bolsheviks (communists) seizure of the Smolny Institute (The Palladian edifice serving as the first women’s educational institution in Russia) in St. Petersburg to serve as their headquarters in the early stages of the October 1917 Revolution.
As for buildings that have suffered “chronic neglect” due to the most draconian rent control laws in the nation, “we will work to transfer ownership to responsible stewards. Stewards that include community land trusts and nonprofits.” (Washington Examiner 6/3/2026).
Think it can’t happen here, think again. As mentioned previously Seattle Mayor Katie Wilson is a socialist just like Mamdani. She appears equally antipathic to the private sector, running Howard Schultz Chairman and CEO of Starbucks out of town and waving “like bye” to millionaires leaving Washington state.
Then there is the Portland City Council: with four socialist members and two fellow travelers they effectively drive the city’s agenda.
With a landlord “vacancy tax” on the agenda to “incentives” owners to fill up their spaces and ‘revitalize’ downtown, it’s not going to get any better for CRE investors any time soon.
With vacancies rising and properties languishing, the next logical step for these folks is to either seize properties outright or force their sale for perceived “misconduct.”
As city government made life increasingly difficult for landlords with regulatory overreach and an ever increasing tax burden, we asked the question, “What is their end game?” We posited government wants to replace private ownership in the housing industry. We were right.
Government, both state and local, believes it can provide housing in a more fair and efficient manner than the private sector.
Whether it is New York, Seattle, Portland, LA, Minneapolis, Denver, socialists are taking over big cities, next up – Congress.
If you are an Oregon resident, it may be worth considering reducing your ownership footprint now. I believe one of the best and easiest ways to do this is with DSTs.
