New York City Rent Increased by 4.5%

The New York City Rent Guidelines Board on Monday approved a rent increase of 3% to 4.5% for rent-stabilized apartments, effective from October 1. Since Mayor Eric Adams took office in 2022, the board has consistently voted for rent hikes every year. This increase will affect nearly one million tenants in the city.

In a close 5-4 vote, the board decided on a 3% increase for one-year leases and a 4.5% increase for two-year leases. About half of the city’s privately owned apartments are rent-stabilized, meaning their rents are regulated and generally lower than other units.

According to government surveys, rent for rent-stabilized apartments that was $1,500 per month in 2023 has now risen to $2,000. The board’s decision comes shortly after young Assemblyman Zohran Mamdani won the Democratic primary for mayor, pledging to freeze rent increases for rent-stabilized units if elected in November.

Mayor Eric Adams expressed disappointment, stating, “I recommended a lower increase, but the board raised it higher than I suggested.” Referring to Mamdani’s rent promises, Adams added, “Rent freezes sound appealing but are shortsighted policies that will ultimately hurt tenants.”

The board had considered proposals ranging from 1.75% to 4.75% for one-year leases and 3.75% to 7.75% for two-year leases before settling on the final increases.

Last year, the board approved increases of 2.75% for one-year and 5.25% for two-year leases. Adams’s predecessor, Bill de Blasio, who served as mayor from 2014 to 2021, suspended rent increases for rent-stabilized units three times during his terms.

At the board meeting held on Manhattan’s Upper East Side, tenant activists led by Democratic Assemblywoman Marcela Mitaynes protested loudly, chanting “No rent increase.” Tenant advocate and New York State Tenants Block co-chair Joan Grel called for the resignation of several board members whose terms had expired, urging for new representatives to be appointed.

The board consists of nine members appointed by the mayor, including two tenant representatives, two landlord representatives, and five general public members, including the chairperson.

The rent hike has caused concern among tenants, especially as New York City already has some of the highest rents in the United States. Many low- and middle-income residents are struggling under the burden of rising housing costs.

Seventy-two-year-old retired garment worker Shuzhen Lu from Chinatown said the increases will add unbearable pressure on those with limited incomes. With a current rent of $1,800, which is nearly three times his monthly income, he relies heavily on his son to cover rent. “Year after year, rent increases make it impossible for us to survive here. Every time rent goes up, I lose some of my loved ones in this city. Chinatown will eventually become an empty shell,” he said.

On the other hand, landlords’ advocacy group, Small Property Owners of New York, expressed disappointment with the modest rent increase, arguing that it does not cover the rising operational costs, making it difficult for them to sustain their properties.