May 25, 2025
In a closely watched decision this week, New York City’s Rent Guidelines Board gave preliminary approval for rent increases on rent-stabilized apartments — but the news isn’t sitting well with landlords.
In a 5-4 vote, the board proposed rent hikes of 1.75% to 4.25% for one-year leases and 4.75% to 7.75% for two-year leases.
The final vote will happen in late June, with any changes impacting leases starting October 1st.
Roughly 1 million rent-stabilized units across the city are affected, and many building owners are warning that these modest increases won’t be enough to fix the growing financial distress across the aging rental housing stock.
Rising interest rates, inflation, and tighter rent laws from 2019 have squeezed landlords, making it harder to maintain older buildings, especially those built before 1974.
Industry leaders like the New York Apartment Association didn’t hold back after the vote.
They argue that expenses for landlords are rising much faster than what the new rent increases allow. In some Bronx neighborhoods, operating costs have spiked by double or even triple digits.
Foreclosures are already creeping up, with some banks refusing to even take back distressed buildings, signaling just how tough the rent-stabilized market has become.
Meanwhile, tenant advocates and some city officials are pushing in the opposite direction, calling for a rent freeze to ease the burden on renters during a housing affordability crisis.
Even Mayor Eric Adams, who’s been more open to rent increases compared to previous mayors, said the higher end of the proposed rent hikes — especially 7.75% for two-year leases — is too steep for struggling New Yorkers.
The Rent Guidelines Board pointed out that building operating costs rose by 6.3% over the past year, but their preliminary rent adjustment doesn’t even match that increase.
Landlords argue this mismatch will continue to erode the financial viability of thousands of stabilized buildings — putting even more pressure on a housing market with just a 1.4% vacancy rate.
The debate isn’t over yet. Public hearings are scheduled to kick off May 22nd before the final vote next month.
Until then, both sides are bracing for a heated few weeks — and a decision that could shape the future of affordable housing across New York City.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
