July 31, 2025
The Rent Guidelines Board has officially approved a rent increase for New York City’s nearly 1 million rent-stabilized apartments—3% for one-year leases and 4.5% for two-year leases starting on or after October.
The move came despite mounting calls from tenants and political candidates alike for a rent freeze amid ongoing affordability concerns.
As a realtor in NYC, I’m seeing firsthand how these decisions fuel tension between tenants struggling to keep up with rising costs and landlords trying to stay afloat amid higher operating expenses.
On one hand, property owners are battling rising insurance premiums, labor costs, and building maintenance—especially in aging properties that dominate the rent-stabilized landscape. On the other hand, many tenants are feeling crushed under the weight of increasing housing costs while wages remain stagnant.
Mayor Eric Adams urged the board to adopt the “lowest increase possible,” though he didn’t push for a freeze. That stands in stark contrast to mayoral challenger Zohran Mamdani, who has built much of his campaign on the promise of a full rent freeze. His stance has fired up a base of tenants who feel the current system is stacked against them.
The vote—5 to 4—was close, underscoring just how divided the city is on this issue. From the realtor’s perspective, this kind of uncertainty sends ripples through the housing market.
Owners of rent-stabilized buildings are weighing whether to continue reinvesting in their properties, sell, or convert, especially as maintenance costs outpace allowed rent hikes. And for tenants, the sense of instability only grows with each rent bump.
'Ann Korchak of the Small Property Owners of NY put it bluntly: “We’re underfunding and defunding housing once again.” She’s not wrong. The challenge is finding a solution that doesn't put the entire financial burden on either party—especially in a city where both affordable housing and sustainable property ownership are essential to keeping neighborhoods livable and diverse.
Whether you're a tenant, investor, or small landlord, one thing is clear: this is going to be a hot issue heading into the mayoral election and beyond. These policy decisions don’t just shape rent rolls—they shape neighborhoods.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
