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Escape from New York: Impending election of a democratic socialist mayor has the wealthy fleeing to the suburbs

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The wealthy in New York City are on the move, spurred by what some are calling the “Mamdani Effect”—a sudden surge of outward migration in anticipation of Zohran Mamdani, a democratic socialist, likely taking the reins as mayor this November.

As polls point ever more decisively to a Mamdani victory in the fast-approaching Nov. 4 election, Manhattan’s elite are quietly packing their bags and setting their sights on the rolling lawns and leafy streets of Westchester County as well as other suburban enclaves.

Real estate agents in Westchester, directly north of the city’s border, say the torrent began shortly after Mamdani’s surprise win in the Democratic primary this June. Zach and Heather Harrison, who represent The Harrison Team at Compass, told Realtor.com they’ve experienced “a spike in Manhattan residents reaching out about suburban properties.” Nearly every city-based buyer they’ve shown homes to in Westchester since summer has brought up the mayoral race as a prime factor driving their suburban search.

Since Mamdani seized the primary, home sales entering contract in Westchester County have jumped 15% compared with last year, according to Harrison data. Local agents now speak freely of the “Mamdani effect,” a shorthand for the collective anxiety—and strategic thinking—rippling through affluent New Yorkers who fear the prospect of increased taxes and sweeping socialist housing reforms.

Manhattan realtors are feeling the heat, too. Alexandra Carter, a licensed real estate salesperson with the Corcoran Group in Manhattan, told Fortune that the reaction to Mamdani’s surprise primary win has been unlike anything witnessed in recent memory.

“I have never seen this type of reaction to a mayor,” she said. “It’s been pretty drastic, after he won the primary we had a companywide call on implications for business because of the ‘rent freezes.’” Describing the Mamdani effect, she said “people are afraid it will be bad for business.”

Mamdani’s campaign did not respond to requests for comment.

Policies ignite an exodus

Mamdani’s proposed housing plan is ambitious—and, for many high earners, unsettling. The centerpiece is a $100 billion investment over 10 years to construct 200,000 new publicly subsidized, rent-stabilized apartments. He also vows to freeze rents on stabilized units citywide for multiple years and double the capital budget for the city’s public housing authority. Another plank would “fast-track” approval for any project that is 100% affordable housing, cutting through bureaucratic delays that have traditionally slowed such developments.

To foot the bill, Mamdani plans a new 2% tax targeting New Yorkers earning more than $1 million annually—a move his campaign says could generate $4 billion per year for early child care, public housing, and more. While working-class and immigrant communities hail these policies as overdue relief, higher earners are calculating their exit strategies.

Taxes are the number one priority, said Zach Harrison. New York City’s local resident income tax already ranges from 3.078% to 3.876%, layered atop state and federal burdens. “One of the great things about Westchester County is that, unlike in the city, nearly all of our towns (with the exception of Yonkers) have no resident income tax,” Harrison notes.

John Boyd, whose corporate site-selection business serves clients in both New York and South Florida, told Fortune that he could see Mamdani’s election kickstarting a “second wave of relocations and wealth migration,” with the first wave being the flight from New York to Florida that took place during the pandemic.

He said his clients are “paying close attention” to the New York mayoral race, noting data that shows hundreds of New Yorkers switching driver licenses to Miami-Dade County. The first half of 2025 saw a 33% surge in New York licenses converting, per Miami Realtors.

Boyd said Westchester is well positioned, as are other regional markets like Jersey City across the Hudson River as well as Nassau and Suffolk Counties on Long Island, to benefit from the “Mamdani effect” and attract new businesses and people. 

“I was talking about this the other day with a client of ours — for some NYC companies Mamdani will be the final straw and they will relocate to South Florida or Dallas or Nashville — but for many others they will seek a regional alternative,” he recalled.

Beyond the suburbs of New York and New Jersey, he sees markets like Miami and Dallas benefitting, too. “It’s not just the taxes and the regulations and concerns about quality of life in New York,” he told Fortune, “but a sense that many of our clients had that they weren’t getting a good return on their tax dollar. The prospect of a Mamdani mayoralty is bringing back a lot of those memories.”

Carter said much of what she sees of the Mamdani Effect is how heavily taxed New Yorkers are already, noting that wealthy New Yorkers have been known to split their time in Florida for tax reasons. She said she’s heard of people moving, while there’s another subset of people who are going to see how the election turns out. She said one client sold his mother’s apartment over the summer and has been waiting “to see if he wants to reinvest in NYC.”

Even if Mamdani does not enact any policy that is remotely quasi-socialist, his reputation is preceding him with the federal government, which has made ominous noises about its future relationship with the country’s largest city. President Donald Trump has repeatedly threatened to withhold federal funding from Mamdani (while conceding that it “looks like he’s going to win”), and Treasury Secretary Scott Bessent said that he would repeat a famous phrase if Mamdani ruins municipal finances and seeks help: drop dead.

Will the exodus become a flood?

Suburban living, it should be noted, is hardly cheap. Westchester’s median home list price hit $729,999 in August—far above the national median of $429,990. And median household incomes in Westchester overall exceed New York state and national averages. The county is home to some of the richest zip codes in the U.S., including its single wealthiest suburb, Scarsdale.

While income taxes in Westchester are lower than those in New York City, the county has some of the highest property taxes in the country, money that helps fund Westchester’s competitive public schools and public amenities.

Some commentators, especially conservative ones, warn of a full-blown exodus. Fox News host Sean Hannity, a former New Yorker now based in Florida, famously said on air, “If they want to go with Mamdani as the mayor of New York City, I invite you all to come and broadcast your show as I do, originate your show in the free state of Florida. Because there is going to be a mass exodus out of the state of New York, the likes of which we have never seen.”

Still, despite the headlines (and articles like this one), New York City’s housing market continues to show surprising resilience. Home prices slipped 1.2% nationwide in August, but New York’s edged up 0.3% month-over-month, per Realtor.com data. Nationally, homes are sitting longer on the market, but New York homes averaged 58 days compared to the national 60-day average.

Carter said Mamdani might be campaigning on a very progressive platform, but there are going to be limits on what he actually accomplish. “Freezing rent and turning NYC socialist overnight will not happen.”

As for herself, she won’t be one of the people leaving New York, telling Fortune that she, her husband and her two young boys have moved to a townhouse in the Park Slope section of Brooklyn.

“We definitely are not going anywhere—we love it.” There’s just a lot of bad vibes, she added. “I do think people are genuinely scared of the unknown.”



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Mark Zuckerberg says the ‘most important thing’ he built at Harvard was a prank website

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For Mark Zuckerberg, the most significant creation from his two years at Harvard University wasn’t the precursor to a global social network, but a prank website that nearly got him expelled.

The Meta CEO said in a 2017 commencement address at his alma mater that the controversial site, Facemash, was “the most important thing I built in my time here” for one simple reason: it led him to his wife, Priscilla Chan.

“Without Facemash I wouldn’t have met Priscilla, and she’s the most important person in my life,” Zuckerberg said during the speech.

In 2003, Zuckerberg, then a sophomore, created Facemash by hacking into Harvard’s online student directories and using the photos to create a site where users could rank students’ attractiveness. The site went viral, but it was quickly shut down by the university. Zuckerberg was called before Harvard’s Administrative Board, facing accusations of breaching security, violating copyrights, and infringing on individual privacy.

“Everyone thought I was going to get kicked out,” Zuckerberg recalled in his speech. “My parents came to help me pack. My friends threw me a going-away party.”

It was at this party, thrown by friends who believed his expulsion was imminent, where he met Chan, another Harvard undergraduate. “We met in line for the bathroom in the Pfoho Belltower, and in what must be one of the all time romantic lines, I said: ‘I’m going to get kicked out in three days, so we need to go on a date quickly,’” Zuckerberg said.

Chan, who described her now-husband to The New Yorker as “this nerdy guy who was just a little bit out there,” went on the date with him. Zuckerberg did not get expelled from Harvard after all, but he did famously drop out the following year to focus on building Facebook.

While the 2010 film The Social Network portrayed Facemash as a critical stepping stone to the creation of Facebook, Zuckerberg himself has downplayed its technical or conceptual importance.

“And, you know, that movie made it seem like Facemash was so important to creating Facebook. It wasn’t,” he said during his commencement speech. But he did confirm that the series of events it set in motion—the administrative hearing, the “going-away” party, the line for the bathroom—ultimately connected him with the mother of his three children.

Chan, for her part, went on to graduate from Harvard in 2007, taught science, and then attended medical school at the University of California, San Francisco, becoming a pediatrician.

She and Zuckerberg got married in 2012, and in 2015, they co-founded the Chan Zuckerberg Initiative, a philanthropic organization focused on leveraging technology to address major world challenges in health, education, and science. Chan serves as co-CEO of the initiative, which has pledged to give away 99% of the couple’s shares in Meta Platforms to fund its work.

You can watch the entirety of Zuckerberg’s Harvard commencement speech below:

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing. 



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Senate Dems’ plan to fix Obamacare premiums adds nearly $300 billion to deficit, CRFB says

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The Committee for a Responsible Federal Budget (CRFB) is a nonpartisan watchdog that regularly estimates how much the U.S. Congress is adding to the $38 trillion national debt.

With enhanced Affordable Care Act (ACA) subsidies due to expire within days, some Senate Democrats are scrambling to protect millions of Americans from getting the unpleasant holiday gift of spiking health insurance premiums. The CRFB says there’s just one problem with the plan: It’s not funded.

“With the national debt as large as the economy and interest payments costing $1 trillion annually, it is absurd to suggest adding hundreds of billions more to the debt,” CRFB President Maya MacGuineas wrote in a statement on Friday afternoon.

The proposal, backed by members of the Senate Democratic caucus, would fully extend the enhanced ACA subsidies for three years, from 2026 through 2028, with no additional income limits on who can qualify. Those subsidies, originally boosted during the pandemic and later renewed, were designed to lower premiums and prevent coverage losses for middle‑ and lower‑income households purchasing insurance on the ACA exchanges.

CRFB estimated that even this three‑year extension alone would add roughly $300 billion to federal deficits over the next decade, largely because the federal government would continue to shoulder a larger share of premium costs while enrollment and subsidy amounts remain elevated. If Congress ultimately moves to make the enhanced subsidies permanent—as many advocates have urged—the total cost could swell to nearly $550 billion in additional borrowing over the next decade.

Reversing recent guardrails

MacGuineas called the Senate bill “far worse than even a debt-financed extension” as it would roll back several “program integrity” measures that were enacted as part of a 2025 reconciliation law and were intended to tighten oversight of ACA subsidies. On top of that, it would be funded by borrowing even more. “This is a bad idea made worse,” MacGuineas added.

The watchdog group’s central critique is that the new Senate plan does not attempt to offset its costs through spending cuts or new revenue and, in their view, goes beyond a simple extension by expanding the underlying subsidy structure.

The legislation would permanently repeal restrictions that eliminated subsidies for certain groups enrolling during special enrollment periods and would scrap rules requiring full repayment of excess advance subsidies and stricter verification of eligibility and tax reconciliation. The bill would also nullify portions of a 2025 federal regulation that loosened limits on the actuarial value of exchange plans and altered how subsidies are calculated, effectively reshaping how generous plans can be and how federal support is determined. CRFB warned these reversals would increase costs further while weakening safeguards designed to reduce misuse and error in the subsidy system.

MacGuineas said that any subsidy extension should be paired with broader reforms to curb health spending and reduce overall borrowing. In her view, lawmakers are missing a chance to redesign ACA support in a way that lowers premiums while also improving the long‑term budget outlook.

The debate over ACA subsidies recently contributed to a government funding standoff, and CRFB argued that the new Senate bill reflects a political compromise that prioritizes short‑term relief over long‑term fiscal responsibility.

“After a pointless government shutdown over this issue, it is beyond disappointing that this is the preferred solution to such an important issue,” MacGuineas wrote.

The off-year elections cast the government shutdown and cost-of-living arguments in a different light. Democrats made stunning gains and almost flipped a deep-red district in Tennessee as politicians from the far left and center coalesced around “affordability.”

Senate Minority Leader Chuck Schumer is reportedly smelling blood in the water and doubling down on the theme heading into the pivotal midterm elections of 2026. President Donald Trump is scheduled to visit Pennsylvania soon to discuss pocketbook anxieties. But he is repeating predecessor Joe Biden’s habit of dismissing inflation, despite widespread evidence to the contrary.

“We fixed inflation, and we fixed almost everything,” Trump said in a Tuesday cabinet meeting, in which he also dismissed affordability as a “hoax” pushed by Democrats.​

Lawmakers on both sides of the aisle now face a politically fraught choice: allow premiums to jump sharply—including in swing states like Pennsylvania where ACA enrollees face double‑digit increases—or pass an expensive subsidy extension that would, as CRFB calculates, explode the deficit without addressing underlying health care costs.



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Netflix–Warner Bros. deal sets up $72 billion antitrust test

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Netflix Inc. has won the heated takeover battle for Warner Bros. Discovery Inc. Now it must convince global antitrust regulators that the deal won’t give it an illegal advantage in the streaming market. 

The $72 billion tie-up joins the world’s dominant paid streaming service with one of Hollywood’s most iconic movie studios. It would reshape the market for online video content by combining the No. 1 streaming player with the No. 4 service HBO Max and its blockbuster hits such as Game Of ThronesFriends, and the DC Universe comics characters franchise.  

That could raise red flags for global antitrust regulators over concerns that Netflix would have too much control over the streaming market. The company faces a lengthy Justice Department review and a possible US lawsuit seeking to block the deal if it doesn’t adopt some remedies to get it cleared, analysts said.

“Netflix will have an uphill climb unless it agrees to divest HBO Max as well as additional behavioral commitments — particularly on licensing content,” said Bloomberg Intelligence analyst Jennifer Rie. “The streaming overlap is significant,” she added, saying the argument that “the market should be viewed more broadly is a tough one to win.”

By choosing Netflix, Warner Bros. has jilted another bidder, Paramount Skydance Corp., a move that risks touching off a political battle in Washington. Paramount is backed by the world’s second-richest man, Larry Ellison, and his son, David Ellison, and the company has touted their longstanding close ties to President Donald Trump. Their acquisition of Paramount, which closed in August, has won public praise from Trump. 

Comcast Corp. also made a bid for Warner Bros., looking to merge it with its NBCUniversal division.

The Justice Department’s antitrust division, which would review the transaction in the US, could argue that the deal is illegal on its face because the combined market share would put Netflix well over a 30% threshold.

The White House, the Justice Department and Comcast didn’t immediately respond to requests for comment. 

US lawmakers from both parties, including Republican Representative Darrell Issa and Democratic Senator Elizabeth Warren have already faulted the transaction — which would create a global streaming giant with 450 million users — as harmful to consumers.

“This deal looks like an anti-monopoly nightmare,” Warren said after the Netflix announcement. Utah Senator Mike Lee, a Republican, said in a social media post earlier this week that a Warner Bros.-Netflix tie-up would raise more serious competition questions “than any transaction I’ve seen in about a decade.”

European Union regulators are also likely to subject the Netflix proposal to an intensive review amid pressure from legislators. In the UK, the deal has already drawn scrutiny before the announcement, with House of Lords member Baroness Luciana Berger pressing the government on how the transaction would impact competition and consumer prices.

The combined company could raise prices and broadly impact “culture, film, cinemas and theater releases,”said Andreas Schwab, a leading member of the European Parliament on competition issues, after the announcement.

Paramount has sought to frame the Netflix deal as a non-starter. “The simple truth is that a deal with Netflix as the buyer likely will never close, due to antitrust and regulatory challenges in the United States and in most jurisdictions abroad,” Paramount’s antitrust lawyers wrote to their counterparts at Warner Bros. on Dec. 1.

Appealing directly to Trump could help Netflix avoid intense antitrust scrutiny, New Street Research’s Blair Levin wrote in a note on Friday. Levin said it’s possible that Trump could come to see the benefit of switching from a pro-Paramount position to a pro-Netflix position. “And if he does so, we believe the DOJ will follow suit,” Levin wrote.

Netflix co-Chief Executive Officer Ted Sarandos had dinner with Trump at the president’s Mar-a-Lago resort in Florida last December, a move other CEOs made after the election in order to win over the administration. In a call with investors Friday morning, Sarandos said that he’s “highly confident in the regulatory process,” contending the deal favors consumers, workers and innovation. 

“Our plans here are to work really closely with all the appropriate governments and regulators, but really confident that we’re going to get all the necessary approvals that we need,” he said.

Netflix will likely argue to regulators that other video services such as Google’s YouTube and ByteDance Ltd.’s TikTok should be included in any analysis of the market, which would dramatically shrink the company’s perceived dominance.

The US Federal Communications Commission, which regulates the transfer of broadcast-TV licenses, isn’t expected to play a role in the deal, as neither hold such licenses. Warner Bros. plans to spin off its cable TV division, which includes channels such as CNN, TBS and TNT, before the sale.

Even if antitrust reviews just focus on streaming, Netflix believes it will ultimately prevail, pointing to Amazon.com Inc.’s Prime and Walt Disney Co. as other major competitors, according to people familiar with the company’s thinking. 

Netflix is expected to argue that more than 75% of HBO Max subscribers already subscribe to Netflix, making them complementary offerings rather than competitors, said the people, who asked not to be named discussing confidential deliberations. The company is expected to make the case that reducing its content costs through owning Warner Bros., eliminating redundant back-end technology and bundling Netflix with Max will yield lower prices.



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