The agency’s founder and CEO, Mauricio Umansky, joins “Varney & Co.” to warn that California’s rent control and wealth tax are driving out builders, investors and middle-class families.
Renowned real estate agent Mauricio Umansky, founder and CEO of The Agency, didn’t hold back during an appearance on “Varney & Co.” from FOX Business, criticizing Los Angeles Mayor Karen Bass (D) for what he called a “huge mistake” in doubling down on rent control.
The city recently imposed a new 4% cap on annual rent increases for some rent-stabilized housing — a move the mayor says will protect tenants from steep price increases. Umansky argued that while this policy may sound good politically, it does nothing to solve the city’s long-term housing crisis.
“Rent control provides short-term relief to landlords and tenants, but it doesn’t solve the problem,” Umansky told host Stuart Varney.
“The problem is solved by capitalism, and the problem is solved by more supply,” he said.
FORMER OBAMA OFFICIAL PANIC AGAINST CALIFORNIA DEMOCRAT FOR FOLLOWING HIS FILE AMID HOUSING CRISIS DEBATE
Umansky, who has built a real estate empire representing some of the most exclusive listings in the world, said development restrictions in California are driving up prices and stifling growth. He urged state and local leaders to focus instead on increasing supply through construction incentives and deregulation.
“We need to solve the problem in the long term,” he said. “Cut red tape, increase supply, give tax incentives to builders so we have more supply. More supply and less demand drives prices down and creates affordability.”
Umansky also took aim at California’s proposed wealth tax, warning that the state’s increasingly harsh tax and regulatory policies are driving away businesses and families. The wealth tax targets the ultra-wealthy, applying to people with a net worth above $50 million at a rate of 1% and to those with a net worth above $1 billion at a rate of 1.5%. The goal is to generate revenue for housing, education and social programs while addressing wealth inequality. However, critics warn that it could drive wealthy individuals and their businesses out of the state, potentially reducing tax revenue and overall economic activity.
Celebrity chef Andrew Gruel joined “Varney & Co.” to criticize Gov. Gavin Newsom’s policies, warning that California’s middle class is disappearing as residents flee the state and businesses face “death by a thousand cuts.”
“I think what made the country great was the freedom from capitalism, the freedom to compete and the freedom to do things,” he said. “Middle incomes are fleeing to more affordable places like Arizona, Texas, Florida, and we continue to see it.”
California has seen a steady net exodus of residents in recent years, with nearly 340,000 people leaving the state between 2022 and 2023, according to migration data from the U.S. Census Bureau.
Los Angeles city skyline on a sunny day with views of office buildings and neighborhoods. (Simonkr/Getty Images)
When asked if a Republican could win statewide office in California, Umansky was skeptical but expressed hope for more centrist leadership.
NEWSOM JUST MADE A CATASTROPHIC MISTAKE ON CALIFORNIA’S HOMELESS DISASTER
“I would love to see that,” he said. “Maybe we can find some sort of middle ground and get…an independent who comes in, who has a good monetary policy who understands…how to solve…how to have a balanced budget…how to provide security.”
California hasn’t elected a Republican governor since Arnold Schwarzenegger in 2006. Umansky suggested that breaking the state’s partisan gridlock could push someone away from traditional partisan lines.
Varney pressed him further on Gov. Gavin Newsom’s 2028 presidential ambitions, asking if Newsom could convince the rest of America that the country should “look like California.”
Umansky was quick to point out the state’s ongoing problems.
GAVIN NEWSOM DECLARED AS THE DEMOCRATIC PARTY’S “FRONTRUNNER” FOR 2028 BY POLITICO
“He’s certainly a very charismatic man…but there’s still a lot to prove in California. You can’t just rely on your…charisma and your good looks,” he said. “We have affordability issues, we won’t have a balanced budget. We don’t have security, we don’t have a good lifestyle.”
The Wall Street Journal’s Allysia Finley joins “Varney & Co.” to discuss California Governor Gavin Newsom’s potential White House ambitions and President Donald Trump’s view on the current state of New York City.
Umansky’s message was clear. California’s policies, from rent controls to taxes, push out the very people who once made California prosper. He argued that only by unleashing market forces and supporting builders can the state restore its reputation as a place of opportunity and prosperity.
“Homeownership…creates security in communities,” he said. “We need to bring business back to California. We need to make people happy in California and stay here.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
