The New York City Rent Guidelines Board voted 5-4 on a rent hike of up to 4.5% for the city’s roughly 1 million rent-stabilized apartments.
The New York Post reports the board approved a 3% rent increase on 1-year leases and 4.5% for 2-year leases that start on or after Oct. 1. The increase is considerably greater than the upticks sought by Mayor Eric Adams, who proposed 1.75% and 3.75% hikes on 1-year and 2-year leases, respectively.
“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,” said Adams, who appointed the board’s nine members.
Board member Christina Smith defended the rent hikes, stating it represented an overdue adjustment.
“This board, mandated to be independent under any mayor who comes down the road, cannot continue to operate in a bubble,” Smith said, noting the rent-stabilized apartments “are systematically defunded term after term, and it’s on the watch of elected officials. Sadly, anything that happens tonight will not solve the serious housing crisis that faces the not-for-profit housing providers, the supportive housing providers, the public housing providers, nor the private owners who the activists love to vilify. It’s on you, elected New York City. This crisis is on you.”
The organizations representing the city’s real estate professionals welcomed the board’s vote but argued the increases could have been greater.
“These adjustments by RGB, while less than the increase in costs imposed on owners, are a necessary step toward preserving the long-term health of our housing stock,” said Real Estate Board of New York President James Whelan.
“While we are disappointed that the RGB once again adjusted rents below inflation, we appreciate that they stood up to political pressure calling for rent freezes that would accelerate the financial and physical deterioration of thousands of older rent-stabilized buildings,” said New York Apartment Association CEO Kenny Burgos.
