New York City hikes prices 2.75% for rent-stabilised apartments

TENANTS in New York City’s roughly one million rent-stabilised apartments will face a third consecutive year of price increases.

Prices will rise 2.75 per cent for one-year leases beginning Oct 1 or later, the city’s Rent Guidelines Board voted on Monday (Jun 17). For two-year leases, rents will climb 5.25 per cent.

The city’s rent-stabilised units – which house more than two million New Yorkers – have been under intense pressure in recent years. Landlords have argued that their income has failed to keep up with rising expenses, while renters have contended that owners are simply looking to supplement more narrow profit margins.

“This board’s votes, year after year, to continue increasing rents on tenants – many of whom are already rent-burdened or severely rent-burdened – prove that they are willfully uninterested in making informed decisions that will keep these units affordable for all New Yorkers,” said Adriene Holder, chief attorney of the civil practice at the Legal Aid Society, which represents tenants in housing disputes.

State laws passed in 2019 and earlier this year have made it more difficult for owners to deregulate apartments, cutting into a way they have been able to raise their revenues. Tenants’ groups have been calling for a rent freeze for stabilised apartments, arguing that the prices are already enough to cover landlords’ costs.

The vote’s outcome is “a rent adjustment that fails to cover inflation, nevermind the actual increases in operational costs, leading to lower quality housing for tenants”, said Jay Martin, executive director of the Community Housing Improvement Program, which represents property owners.

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The increases approved on Monday are larger than what StreetEasy tracked citywide for market-rate apartments. The median asking rent was up 2 per cent in May from a year earlier, according to the popular listings website. Rents across the city have started to stabilise slightly after more than two years of steep price hikes, thanks in part to an increase in available units.

New York City Mayor Eric Adams had called on the board to approve a moderate increase that would help landlords afford building maintenance without overburdening tenants much beyond the current monthly rents. BLOOMBERG