June 20, 2025
As a real estate professional in NYC, I’ve seen my fair share of ups and downs in the housing market. But what’s unfolding with rent-stabilized apartments right now feels different—it’s not just a challenge, it’s a full-blown crisis, and it’s already underway.
The 2019 Housing Stability and Tenant Protection Act (HSTPA) was meant to protect tenants from displacement and excessive rent hikes. And on paper, it did. But behind the curtain, it’s triggered a serious breakdown in the economics of building ownership—especially for those managing older rent-stabilized units.
Two large landlords recently shared the numbers behind more than 4,000 rent-stabilized apartments across NYC’s outer boroughs. What they revealed? Income is falling, costs are exploding, and portfolios that once felt like solid investments are now in freefall.
One nonprofit managing 1,000 Bronx apartments saw its reserves plummet from $7M to $1M over just four years—while losing $1M annually in operations. And that’s before debt service.
Even longtime owners who take pride in maintaining their properties are underwater. Maintenance costs are up. Insurance is through the roof. Taxes have doubled.
Yet landlords are capped on how much they can recoup—even after investing in major renovations. A boiler replacement isn’t just a project anymore—it’s a question of survival.
The data is startling: median sale prices for stabilized units have nearly halved in many boroughs. Bronx units that once sold for $177K now average $112K. And with so many properties operating at a loss, defaults and distress sales are becoming the norm.
This isn’t about picking sides between landlords and tenants. It’s about recognizing a system that’s now unsustainable. If rent-stabilized housing collapses, the people who rely on it most—low-income New Yorkers—will feel it first and hardest.
As brokers, agents, and property owners, we need to be part of the conversation and the solution. The Rent Guidelines Board will vote again on rent increases this June.
But beyond annual adjustments, there needs to be a deeper legislative reassessment. One that balances tenant protections with financial reality—so landlords can continue to provide safe, livable housing, not just patch holes in a sinking ship.
Because right now, the crisis isn’t coming. It’s already here.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
