June 19, 2025
As a real estate professional in New York City, it’s impossible to ignore the quiet emergency happening across our rent-stabilized housing stock.
During the latest Rent Guidelines Board (RGB) meeting on May 22, experts and industry insiders painted a stark picture of where things stand—and where we’re heading if nothing changes.
The truth is, a lot of these stabilized buildings—especially those built before 1974—are falling apart. We’re talking real wear and tear, the kind of deferred maintenance that leads to leaks, mold, broken elevators, and major safety issues.
According to Sean Campion from the Citizens Budget Commission, these properties are entering a “death spiral” of neglect that we’ve seen before in NYCHA housing. That’s not a spiral NYC can afford to repeat.
One major factor? Rent regulations that haven’t kept up with inflation or real-world costs. Since the 2019 Housing Stability and Tenant Protection Act, capital improvement spending has taken a serious hit.
If landlords don’t have the margin to reinvest in their buildings, then tenants pay the price in quality of life. According to the 2023 Housing and Vacancy Survey, pre-1974 rent-stabilized units now show 75% more maintenance issues than newer stabilized units—and they’re closing in on NYCHA levels.
But here’s where it gets tricky: not everyone agrees that raising rents is the answer. Some researchers say the revenue from increases won’t necessarily flow back into the buildings. Others argue that even modest hikes could push families closer to displacement in an already unaffordable city.
That’s the tightrope the RGB has to walk. Their job isn’t just about balancing owner needs and tenant protections—it’s about making sure the city’s 1.7 million rent-stabilized tenants don’t fall through the cracks. And right now, many buildings are literally cracking.
From an investment standpoint, the market for stabilized buildings is cold. Rising interest rates and tighter margins are turning away institutional investors, leaving small-time owners holding the bag.
Many of them are in financial workouts or heading that way. And with the city’s current preservation programs costing upwards of $250K–$380K per unit, this is a public cost we’re all eventually going to bear.
To be clear: we’re not advocating for unlimited rent hikes. But if the board doesn’t approve increases that at least match inflation, building deterioration will accelerate. We’re already seeing record-low vacancies and overcrowding rates approaching 13% in these units.
The board’s final vote comes on June 25. Whatever the decision, one thing is clear—ignoring the financial and physical health of our stabilized housing isn’t just a landlord issue. It’s a citywide crisis in the making.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
