New York City’s Rent Guidelines Board approved a rent hike of up to 4.5% for New Yorkers living in the Big Apple’s nearly 1 million rent-stabilized apartments.
In a narrow 5-4 vote Monday night, the board approved a rent increase of 3% for 1-year leases and 4.5% for 2-year leases that start on or after Oct. 1.
The final increase is notably higher than what Mayor Eric Adams — who appointed all nine board members, including two tenant representatives and two landlord representatives — had pleaded for ahead of the final vote.
“While the board exercised their independent judgment, and made an adjustment based on elements such as inflation, I am disappointed that they approved increases higher than what I called for,” he said in a statement.
Earlier in the day, Hizzoner had urged board members to approve the minimum increases it had set at 1.75% and 3.75% hikes on 1-year and 2-year leases, respectively.
Before Monday’s final vote, the board had voted in early May to increase the rent of tenants in rent-stabilized apartments by at least 4.75% for new two-year leases — but it was scaled back to a minimum of 3.75% in a rare reversal less than a month later. The board had set the maximum possible hike it’d be voting on to 7.75%.
“This board, mandated to be independent under any mayor who comes down the road, cannot continue to operate in a bubble. These [rent-stabilized] buildings are systematically defunded term after term, and it’s on the watch of elected officials,” board member Christina Smith said during the Monday meeting.
“Sadly, anything that happens tonight will not solve the serious housing crisis that faces the not-for-profit housing providers, the supportive housing providers, the public housing providers, nor the private owners who the activists love to vilify. It’s on you, elected New York City. This crisis is on you.”
In the weeks leading up to the consequential vote, the board held five public hearings and received more than 200 video testimonies.
On the day of, the tense meeting was interrupted by community members chanting, “Freeze the rent!” and blowing whistles during the board members’ discussion.
The cries hark back to Democratic nominee for mayor, socialist Zohran Mamdani, who has promised to freeze the rent for the millions of tenants in stabilized apartments if elected.
In his statement following the final vote, Adams — who is running for reelection as an Independent — knocked Mamdani’s key campaign promise in a not-so-subtle call-out.
“Rent may be on the rise, but so are deteriorating housing conditions — including inadequate heat and heating breakdowns, mice and rat problems, mold, and leaks — especially for New Yorkers in rent-stabilized housing,” Adams said.
“Demands to ‘freeze the rent’ would exacerbate these harmful health and safety issues inside the homes of more than 1 million New Yorkers by depriving owners of the resources needed to make repairs — a cruel and dangerous proposal. While freezing the rent may sound like a catchy slogan, it is bad policy, short-sighted, and only puts tenants in harm’s way.”
The Real Estate Board of New York (REBNY) praised the rent increases — but said they weren’t enough for the increasing costs landlords face to maintain their units.
“These adjustments by RGB, while less than the increase in costs imposed on owners, are a necessary step toward preserving the long-term health of our housing stock,” REBNY President James Whelan said following the vote.
Some New Yorkers didn’t think the board went far enough, as their adjustment still kept rent below estimated inflation levels.
“They didn’t follow the math, and now these rent adjustments will further plunge small rent-stabilized buildings into distress and foreclosure. Capping rent increases when operating costs are rising is unsustainable,” Ann Korchak, board president of the landlord advocacy group Small Property Owners of New York, said.
Others praised the board for not bending to the will of advocates calling for the rent freeze, bolstered by Mamdani throughout his mayoral campaign.
“While we are disappointed that the RGB once again adjusted rents below inflation, we appreciate that they stood up to political pressure calling for rent freezes that would accelerate the financial and physical deterioration of thousands of older rent-stabilized buildings,” New York Apartment Association CEO Kenny Burgos said.
Last year, the Rent Guidelines Board’s approval for a rent increase sparked protests outside Manhattan’s Hunter College, where the vote was held. Six protesters among the crowd that called for a rent freeze were arrested.
That hike was 2.75% for one-year leases and 5.25% for two-year leases.
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