July 14, 2025
As a NYC real estate broker, I get this question all the time: If landlords are raising rents, how come so many say they’re barely staying afloat? It’s a valid question—and the answer is more layered than it might seem.
Right now, New York City is considering rent increases on some of its most affordable units: rent-stabilized apartments. These homes are critical to keeping the city livable for everyday New Yorkers, and many tenants are understandably pushing back, saying they simply can’t afford to pay more.
On the flip side, many landlords—especially small building owners—are raising red flags. They claim their buildings aren’t generating enough income to keep up with rising expenses. Some are even comparing today’s climate to the 1970s, when financial strain forced landlords to abandon thousands of buildings across the city.
According to a Rent Guidelines Board report, the net operating income (N.O.I.) for rent-stabilized landlords actually rose by 12.1% from 2022 to 2023. That sounds like good news—until you dig deeper.
That 12% bump mostly came from mixed buildings with a higher number of market-rate units. The more rent-stabilized units a building has, the smaller that increase. Fully rent-stabilized buildings only saw a 4.6% rise in N.O.I.—and some areas actually saw declines.
In places like Jamaica, Queens and parts of the Bronx, N.O.I. dropped by over 10%.
Let’s not forget: these older buildings—often built before 1974—house most of the rent-stabilized units in the city. They’re affordable, but aging. And keeping them safe and livable costs money.
N.O.I. measures rent income minus operating costs like maintenance and fuel—but it doesn’t include mortgage payments or taxes. So a positive N.O.I. doesn’t mean landlords aren’t facing real financial pressure. In fact, some building owners can’t even cover their debt service, especially in lower-income neighborhoods.
A report from the Community Preservation Corporation, which lends to owners of older rent-stabilized buildings, found that nearly 30% of their borrowers couldn’t cover their debt with income in 2023—nearly triple the usual rate.
The Rent Guidelines Board is supposed to consider landlords’ economic conditions when deciding on allowable rent hikes. So, when N.O.I. is under stress—especially in buildings that provide the bulk of NYC’s affordable housing—rent increases often follow.
Tenant advocates argue that this unfairly shifts the burden onto renters, who are already stretched thin. With average stabilized rents sitting around $1,477, even a small hike can push families to the edge.
And with a heated mayoral race underway, the pressure is only growing. Some candidates are calling for a rent freeze, while others back increases to support building upkeep.
Both sides have a point.
Landlords—especially in rent-stabilized, aging buildings—are dealing with real financial strain. But renters are also hurting. Many simply can’t absorb another increase, especially after a pandemic that left wages behind inflation.
The real challenge is balance. As a broker, I see how vital it is to preserve this housing stock while also protecting tenants from being priced out. Solutions like tax breaks, repair subsidies, and targeted relief could ease the pressure—without placing the full burden on renters.
NYC can’t afford to lose these affordable homes. Once they're gone, they’re gone for good.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
