Rent Guidelines Board approves rent hikes for 1 million NYC apartments

New York City has some of the most expensive rents in the nation. The median cost of renting an apartment in Manhattan set a new record last month after climbing to $4,395. Renters in the outer borough also face rising rents. New York is one of the few US cities with rent control regulations. However, residents of rent-stabilized apartments will also have to pay more every month due to the upcoming rent hikes. 

The Rent Guidelines Board approved rent increases of up to 3 percent for one-year leases. The board also voted to up two-year leases by 2.75 percent in the first year and 3.2 percent in the second year. The panel includes nine members, all appointed by the mayor. On Wednesday, they voted 5-4 in favor of hikes. These increases will affect rent-stabilized leases signed after October 1, 2023. 

This decision did not satisfy both landlords and tenants. For some, the approved rent hikes were too high – for others – they were not high enough. Rent-stabilized tenants asked for a rent freeze, citing the city’s affordability crisis. At the same time, property owners argued that these rent increases were too low to cover the rising cost of building maintenance. This is the second year in a row when the board approved hikes of 3 percent or higher.

“The RBG ignored their own data and instead played to the intimidation of radical politicians and activists, depriving the largest providers of affordable housing of the revenue they need to keep up with skyrocketing costs,” Joseph Strasburg, president of the Rent Stabilization Association, that represents 25,000 property owners and agents, told Gothamist.

“This willful increase from the Board is both immoral and bad policy that will deepen the local homelessness and eviction crisis,” said Adriene Holder, chief attorney of the Civil Practice at The Legal Aid Society. “For years, landlords enjoyed rubber stamp increases from the Board, and these continued hikes will bear devastating consequences on the New Yorkers most in need of assistance, care and a place to call home.”

Earlier this year, Rent Guidelines Board published its annual “Income and Affordability Study," which also played a role in discussing potential rent hikes. The board found that more than half of NYC’s rent-stabilized households spent 30 percent or more of their income on rent last year. Rent-stabilized tenants have a median annual income of $47,000, with median rent at $1,400 per month. 

Resources:

“New York City Rent Guidelines Board votes in favor of rent hikes,” by Alecia Reid and Elijah Westbrook (CBS New York, 2023)

“NYC approves rent increase for millions living in rent-stabilized apartments,” by Ida Siegal, Jennifer Vazquez, Tom Shea and Chris Jose (NBC New York, 2023)

“Rent hike passes for NYC's 1M stabilized apartments after final board vote,” by Derick Waller (ABC7 News, 2023)

“NYC board votes to increase rents on 1 million rent-stabilized units by 3%,” by David Brand and Neil Mehta (Gothamist, 2023)

“NYC approves hikes for some 1M rent-stabilized apartments,” by Niha Masih (The Washington Post, 2023)