Real estate mogul Mauricio Umansky, founder and CEO of The Agency, issued a warning regarding California's current business climate, emphasizing the need for renewed confidence among business owners to reinvest in the state's economy [1]. Speaking on FOX Business' 'Varney & Co.', Umansky highlighted that affordability and the business environment are major concerns, with high housing costs exerting pressure on both residents and businesses [1]. He referenced research from the Public Policy Institute of California, which found that company headquarters leaving the state often relocate to areas with lower taxes and less regulation [1].
The discussion comes as the 2026 gubernatorial race intensifies between Democrat Xavier Becerra and Republican Steve Hilton. Hilton has campaigned on cutting taxes and regulations, while Becerra has proposed declaring the housing shortage a state of emergency and directing state agencies to prioritize housing production and affordability if elected governor [1]. Umansky stressed the importance of creating affordable housing as a means to stimulate economic growth and underscored that meaningful change would require incremental steps over time [1].
Additionally, Umansky expressed concern over policies proposed by Los Angeles mayoral candidate Nithya Raman, a member of the Democratic Socialists of America. He argued that her policies could make it more difficult for businesses to invest in California, stating, 'Enough is enough. We need to start… Motivating people. It's enough time to just start giving free rides to everybody… That's not a good thing for any business owner' [1].
No specific market reactions, analyst opinions, or forward-looking statements regarding market performance were provided in the article [1].
CONCLUSION
Mauricio Umansky's comments underscore growing concerns among business leaders about California's economic environment, particularly regarding affordability, regulation, and the impact of political leadership. The debate over policy direction in the upcoming gubernatorial and mayoral races could have significant implications for the state's business climate and investment outlook.