C
elebrity realtor Mauricio Umansky, founder and CEO of The Agency, took to FOX Business’s “Varney & Co.” to launch a scathing critique of Los Angeles Mayor Karen Bass’s recent rent‑control policy. The mayor’s administration has capped annual rent hikes at 4% for certain stabilized units, a measure she says will shield tenants from steep increases. Umansky countered that while the policy may win political favor, it offers only temporary relief and fails to address the city’s deeper housing shortage. “Rent control gives short‑term relief to owners and renters, but it doesn’t solve the problem,” he told host Stuart Varney. “Capitalism and increased supply are the real solutions.”
Umansky, who represents some of the world’s most exclusive properties, blamed California’s restrictive development rules for driving up prices and stifling growth. He urged state and local officials to cut red tape, offer tax incentives to builders, and focus on expanding housing supply. “We need to fix the long‑term problem,” he said. “Cut the red tape, increase supply, give tax incentives to builders so that we have a larger supply. The larger supply and the lesser demand lowers prices, creates affordability.”
The realtor also attacked California’s proposed wealth tax, which would target individuals with net worths above $50 million at 1 % and those above $1 billion at 1.5 %. He warned that such heavy‑handed fiscal measures could drive high‑net‑worth residents and businesses out of the state, undermining revenue and economic activity. “What made the country great was the freedom of capitalism, the freedom to compete and the freedom to do things,” he said. “The middle‑income class is fleeing to more affordable states like Arizona, Texas, and Florida, and we’re seeing that.”
Census data confirms a steady outflow of Californians, with nearly 340,000 people leaving the state between 2022 and 2023. When asked whether a Republican could win statewide office, Umansky expressed doubt but suggested that a centrist or independent candidate might break the partisan gridlock. “Maybe we can find some sort of a middle ground and get an independent that has a good monetary policy and understands how to resolve a balanced budget and safety,” he said.
Umansky also questioned Governor Gavin Newsom’s rumored 2028 presidential ambitions, noting that California still faces affordability, budget, and safety challenges. “He’s charismatic, but there’s a lot to prove in California,” he said. “We have affordability issues, we won’t have a balanced budget, we don’t have safety, we don’t have a good lifestyle.”
His overarching message was clear: California’s rent‑control and tax policies are pushing away the very people who once drove its prosperity. By unleashing market forces, supporting builders, and restoring homeownership, he believes the state can regain its reputation as a land of opportunity and prosperity. “Homeownership creates safety in communities,” he added. “We need to bring business back to California and keep people happy and staying here.”
