Hartford Business Journal

HARTFORDBUSINESS.COM | JULY 14, 2025 29 C onnecticut ought to be rooting for New York City mayoral candidate Zohran Mamdani. The self-described Democratic socialist recently skyrocketed to national prominence after winning New York City's Democratic mayoral primary over a number of candidates, including former Gov. Andrew Cuomo. He ran on a populist platform, promising to lower New York's high costs of living and "make life easier" for residents of all income levels. His policies to lower costs include: • Freezing rents on stabilized apartments; • Offering free bus fare and child care; • Investing $70 billion in publicly subsidized housing; and • Launching city-owned grocery stores. Mamdani, who is also advocating for a $30 hourly minimum wage, has pledged to pay for these and other government programs by raising billions of dollars from higher taxes on corporations and individuals making more than $1 million. (He would need state approval to imple- ment those tax increases.) Do I agree with these policies? Absolutely not. A Mamdani admin- istration will likely drive more busi- nesses and wealthy residents out of New York City. What better landing spot than neighboring Connecticut, which has consistently poached New Yorkers over the past decade. In fact, between 2013 and 2023, Connecticut has added a net 161,456 Opinion & Commentary EDITOR'S TAKE CT should cheer on NYC's socialist Democratic mayoral candidate — from afar Greg Bordonaro residents from the Empire State, according to my analysis of U.S. Census Bureau data. That's an aston- ishing number for a state that for decades has also struggled to grow its population, as Northeast residents continue to migrate south for lower taxes and warmer weather. During that 10-year period through 2023, Connecticut, which has an overall population of 3.6 million, gained 293,612 residents from New York. Conversely, 146,549 Connecticut residents moved across the border to the Empire State, Census data shows. The migration of New Yorkers to Connecticut picked up steam in the wake of the pandemic: Between 2021 and 2023, the Nutmeg State added a net 76,957 residents from its neighbor. A Mamdani administration could maintain that momentum for Connecticut — or even accelerate it. That's not to say everything is perfect in this state. We know Connecticut has its own weaknesses to confront, including high electricity prices, high costs of living and doing business, and a severe housing shortage that has, and will continue to, restrict population growth. That's part of the reason Hartford Business Journal in this issue has launched a new four-part series called "CT's Economic Competi- tiveness." The series will explore Connecticut's economic standing nationally and globally in several key areas, including taxation, regulations and workforce development. We purposefully focused on issues that received less attention during the recently completed legislative session. While housing availability and high electricity prices remain key pain points, we thought it would be overkill to provide additional coverage on those topics at this time. The series will run in print issues and online in July and August. The goal is to not only identify and put into context some of Connecti- cut's weaknesses, but also explore possible solutions. The reality is, cities and states exist in a competitive environment — they're all trying to attract and retain capital and talent. And there are numerous factors that impact where people and compa- nies choose to locate. Public officials must pull the right levers to create a fertile growth environment. The calculations are never simple. Mamdani, for example, has accu- rately assessed a major problem in New York City: It's way too expensive and lacks enough affordable housing. According to Apartments.com, the average monthly rent in the city was $4,019 for a 591-square-foot apart- ment as of early July, compared to $2,769 for a 763-square-foot apart- ment in Stamford. His prescription, however, of rent freezes will disincentivize devel- opers from building more housing in the city. Think businesses aren't paying attention? Here are a few recent Wall Street Journal headlines that suggest otherwise: "NYC Developers Gripped by Hysteria After Mamdani's Sudden Rise," and "Wall Street Panics Over Prospect of a Socialist Running New York City." If Mamdani wins in a general election — personally, I'm not sure he will — Connecticut's economic development brass ought to double down on its recruitment efforts in New York City. His administration would present a great opportunity for Connecticut to poach more Gotham City busi- nesses and residents — as long as the General Assembly's Demo- cratically controlled legislature is focused on improving, or at least not further deteriorating, our own business climate. Image created by ChatGPT 2013 2014 2015 2016 2017 2018 2019 2021 2022 2023 NY RESIDENTS THAT MOVED TO CT CT RESIDENTS THAT MOVED TO NY CT'S NET GAIN OF NY RESIDENTS CT HAS GAINED MORE THAN 161,000 FORMER NY RESIDENTS OVER PAST DECADE Here's a breakdown of those migration flows: CT has gained more than 161,000 former NY residents over past decade | Source: U.S. Census Bureau 50K 40K NUMBER OF RESIDENTS 30K 20K 10K 0

• Cover