NYC Rent Guidelines Board votes to increase rents by up to 6%

During the preliminary vote on Thursday, the panel supported rent hikes that would affect roughly 2.4 million rent-stabilized tenants. 

The board proposed a 2 to 4 percent rent increase for one-year leases and a 4 to 6 percent increase for two-year leases. This is the biggest jump in stabilized rents since 2013, and both sides are dissatisfied. Landlords expect higher increases, and tenants push back against suggested changes. 

“These preliminary ranges have proven our biggest fear – that the RGB continues to believe its duty is to operate solely as an affordability program for tenants. Inadequate rent guidelines expedite the deterioration of an already aged housing stock. It’s that simple,” wrote the Rent Stabilization Association that represents 25,000 landlords of rent-stabilized units. 

The proposed rent increases could set back low-income New Yorkers trying to recover from the effects of the pandemic. According to the city analysis, the median household income of rent-stabilized tenants is $44,560, 33 percent lower compared to households living in non-regulated units. Tenant advocacy groups are concerned that any dramatic rent spikes would be unsustainable. 

"Everything, including groceries, are getting more and more expensive for tenants. COVID19 is still continuing,” wrote Reng Ping Chen, member of the Rent Justice Coalition. “We see rates going up and many tenants are still without jobs. Every year the Rent Guidelines Board has raised the rent, and the rent is too high. Without income, we cannot pay the rent, and will be on the streets. We call on the Mayor to support tenants and roll back the rent!"

Nearly half of all NYC apartments are rent-stabilized, according to the NYU Furman Center for Real Estate and Urban Policy. The research center suggests that rent increases are necessary to fund sufficient building maintenance and renovations. Otherwise, properties might fall into despair. 

Resources:

“Panel Backs Rent Increases for More Than 2 Million New Yorkers,” by Mihir Zaveri (The New York Times, 2022)

“Sociodemographics of Rent Stabilized Tenants,” (NYC Department of Housing Preservation & Development, 2017)

“NYC Rent Guidelines Board proposes 2-4%, 4-6% hikes for apartments,” by Eyewitness News (ABC 7 NY, 2022)

“NYC Rent Guidelines Board votes to increase tenants' rents by up to 6%,” by Gwynne Hogan and Catalina Gonella (Gothamist, 2022)

“The Economic Challenge for the Rent Guidelines Board:  Balancing Long-Term Affordability in Rent Stabilized Housing,” by Mark Willis and Matthew Murphy (NYU Furman Center Blog, 2022)