New York City Approves Rent Hikes on Rent-Stabilized Apartments

“A New York City panel that regulates the rents for roughly one million rent-stabilized apartments approved the highest increases in almost a decade on Tuesday, after property owners said they were being pinched by taxes and rising expenses.” As reported by Mihir Zaveri in The New York Times, the Rent Guidelines Board voted to raise rents by 3.25 percent for one-year leases and 5 percent for two-year leases, affecting around two million New Yorkers. According to a separate article in Bloomberg, only 23 percent of New York residents can currently afford the city’s median rent.

“At the panel’s public hearing last week in the Bronx, more than 60 of roughly 70 speakers were tenants, tenant advocates and elected officials who argued for a rent decrease or a rent freeze.” Meanwhile, landlords say they need even higher rent increases to stay in business and make needed upgrades to buildings.

Defending the panel’s decision, Mayor Eric Adams, in a statement, said “small landlords are at risk of bankruptcy because of years of no increases at all, putting building owners of modest means at risk while threatening the quality of life for tenants who deserve to live in well-maintained, modern buildings.” Zaveri points out that while Mayor Adams and landlord groups highlight the plight of “mom and pop” landlords, “more than 60 percent of rent-stabilized homes are owned by landlords with portfolios of more than 1,000 units overall.”