Rent Guidelines Board discusses a nearly 16% increase for two-year leases

The cost of living in NYC continues to rise, particularly when it comes to housing. In March, the median cost of renting an apartment in Manhattan reached a new all-time high. Now, New Yorkers living in rent-regulated apartments may also face steep increases. The New York City Rent Guidelines Board (RGB) is discussing nearly 16 percent rent hikes, the highest in almost two decades. 

The board, which includes nine members appointed by the mayor, establishes rent guidelines for approximately one million rent-stabilized apartments in New York City. Once a year, the RGB votes on the percentage by which owners of the rent-stabilized apartments can raise the rent. This year, the panel is weighing on increases of up to 8.25 percent on one-year leases and 15.75 percent on two-year leases.

Although the Rent Guidelines Board has suggested these numbers, it is likely that the approved rent increases will be much lower. Last year, the board approved rent hikes of 3.25 percent on one-year leases and 5 percent on two-year leases, down from the initial figure of up to 9 percent. The Rent Stabilization Association, which represents the landlords of rent-stabilized units, backed the proposed rent increases.

"It's a market basket of costs for owners to operate buildings," Frank Ricci, Vice President of the Rent Stabilization Association, told ABC7 NY. "Now you have dramatic increases in insurance rates, property taxes which have gone up every year especially the assessments and on top of that operating costs are going through the roof because of these government mandates."

The NYC Rent Guidelines Board will host public hearings between now and June before approving potential rent hikes. The tenant advocates, including the Legal Aid Society, one of the largest non-profit organizations in New York City, opposed any rent increases. The organization cites high inflation and stagnant wages, among other barriers that rent-stabilized tenants face. 

“There is simply no justification to support any rent increase on some of our most vulnerable neighbors, especially now with a recession looming later this year,” The Legal Aid Society said in the statement. “We again call on the Rent Guidelines Board to commit to a rent freeze to help ensure that working class tenants and families can remain safely in their homes.”

Resources:

“How much will rents rise in stabilized apartments this year? The debate gets underway,” by Emily Myers (Brick Underground, 2023)

“Rent Guidelines Board proposes 16% hike for two-year leases,” by C.J. Hughes (Crain’s New York, 2023)

“The Rent-Stabilization Board Is Proposing What Exactly?” by Kim Velsey (Curbed, 2023)

“NYC panel proposes 16% rent increase for 2-year leases in rent-stabilized apartments,”(ABC7 NY, 2023)