The New York City Rent Guidelines Board cast a narrow vote Monday night approving rent increases for rent-stabilized apartments across the five boroughs.
By a 5-to-4 margin, the board opted for a 3% rise for one-year leases and a 4.5% bump for two-year leases. These final figures fell within the range previously proposed, which had included possibilities as high as 4.75% for one-year leases and 7.75% for two-year contracts.
These changes are set to apply to leases commencing between October 1, 2025, and September 30, 2026.
In the spring, the board gave preliminary approval to a range of potential increases. Later, the focus shifted to potentially limiting the hikes for two-year leases, a concession to tenant advocates pushing for restraint.
Before the final vote, tenant organizations gathered to call for minimal increases, urging the board to consider the financial burden renters already shoulder.
Landlords argued that rising costs for upkeep, insurance, and taxes leave them little flexibility, while tenants countered that they’re equally strained by inflation and stagnant wages.
The outcome left both tenant and landlord groups unhappy with what they saw as either an excessive burden or an insufficient adjustment.
“I’ve been in my building for 16 years. What happened to the money that they got from me for my rent? What happened to the money? What did they do? Did they [go] on vacation? Did they buy another building?” said tenant Mercedes Escoto.
“So it’s a waste of time. This is done every year for no good. People are making money, but we’re not making more money,” said fellow tenant Joanne Lawson.
“I look at $600 a year more on a one-year lease, or $900 more a year and that means what are we gonna cut back on?” added tenant Johnny Rivera.
Ann Korchak, who leads the Small Property Owners of NY and advocates for landlords who own a handful of units, sharply criticized the board’s decision after the vote.
“The RGB’s independent public members, like their predecessors, have failed small building owners. We needed rent increases proportional with the 6.3% surge in building operating costs presented in the RGB’s own reports. They didn’t follow the math, and now these rent adjustments will further plunge small rent-stabilized buildings into distress and foreclosure. Capping rent increases when operating costs are rising is unsustainable. It’s time to seriously consider in the future separate, higher rent increases for apartment leases in small economically distressed buildings with high numbers of rent-stabilized apartments,” Korchak stated.
Landlords representing smaller properties argued that the board’s data is misleading and doesn’t accurately portray the financial strain they face.
“That data is grossly incorrect. Why? Because they’re mixing different kinds of buildings. They’re mixing the pre-1974 buildings, small buildings, 100-year-old buildings mostly that have dramatically more expensive costs,” said property owner Bryan Liff.
“We’re not millionaires and all of us aren’t white. How about that? And we go to work to supplement what’s happening in our small properties,” added landlord Joyce Holland.
The board’s nine members are appointed by the mayor, and the vote became a lightning rod in this year’s mayoral race.
Assemblyman Zohran Mamdani of Queens, who just claimed victory in the Democratic primary, campaigned heavily on a rent freeze pledge. His win is expected to be confirmed when the final ranked choice tabulations are released Tuesday, likely showing him surpassing the 50% threshold.
Mayor Eric Adams, now seeking reelection as an independent, has generally shown empathy toward small landlords. Yet following the board’s decision, he expressed disappointment over the final outcome.
“Another massive cost for New Yorkers each month is rent, and the city’s historically low rental vacancy has millions of us feeling the squeeze, which is why, earlier today, I urged the Rent Guidelines Board to adopt the lowest increase possible, as I’ve done in the past. While the board exercised their independent judgment, and made an adjustment based on elements such as inflation, I am disappointed that they approved increases higher than what I called for,” Adams said in a statement.
He made clear, however, that he opposes calls to completely freeze rent.
“While our administration is always fighting to make this city more affordable, what we will never do is sell New Yorkers on an idea that would ultimately leave them in worsening housing conditions. Rent may be on the rise, but so are deteriorating housing conditions — including inadequate heat and heating breakdowns, mice and rat problems, mold, and leaks — especially for New Yorkers in rent-stabilized housing,” Adams stated. “Demands to ‘freeze the rent’ would exacerbate these harmful health and safety issues inside the homes of more than 1 million New Yorkers by depriving owners of the resources needed to make repairs — a cruel and dangerous proposal. While freezing the rent may sound like a catchy slogan, it is bad policy, short-sighted, and only puts tenants in harm’s way.”
City Comptroller Brad Lander, who currently sits in third place in the Democratic mayoral primary as ranked choice tabulations continue, laid blame squarely at the mayor’s feet.
“For the fourth year in a row, Mayor Adams’ appointees on the NYC Rent Guidelines Board stuck tenants with a rent increase they can’t afford — even as landlord profits have soared, vacancy rates are at historic lows, and the proportion of rent-burdened households has reached unsustainable levels,” Lander said. “New York City tenants are facing the highest rents ever. Given the severity of the housing emergency, it is vital that the City do everything it can to keep rents as low as possible, ensure units are well-maintained, and cover essential costs. Instead, Mayor Adams’ appointees to the RGB jacked up tenants’ rents once again.”
Lander and Mamdani had previously endorsed one another and are aligned in their opposition to any further rent hikes.
“After carefully reviewing research compiled by the Rent Guidelines Board, I concluded that a rent freeze was appropriate for the upcoming year, following three years of rent increases that have raised rents by nearly 9%. Economists, tenant advocates, and even the City’s own reports also concluded that a rent increase would lead to more displacement and inequality. And last week, over half-a-million voters — well over half of the electorate — came out and voted for candidates supporting a rent freeze,” Lander said. “Unfortunately, Mayor Adams’ appointees to the Rent Guidelines Board failed to listen.”
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