By Ella Napack, THE CITY
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In a vote affecting the roughly million New York households in rent-stabilized apartments, the New York City Rent Guidelines Board voted Monday night to allow rent increases of 2.75% for one-year leases and 5.25% for two-year leases beginning Oct. 1.
The five-to-four vote capped a contentious voting session, part of an annual process in which the city board weighs landlord and tenant economics in setting permitted rent hikes.
A crowded tenant group on the Park Avenue sidewalk outside Hunter College calling for a rent freeze preceded the vote inside. Eleven demonstrators were arrested after police ordered them to step away from the entrance.
The final decision comes after a volatile few months of meetings, including a preliminary vote April 30 during which two tenant members of the board walked out in protest. In that earlier meeting, the board decided on a potential range of rent adjustments of between 2 and 4.5% for a one-year lease and 4 to 6.5% for two-year leases.
Public Advocate Jumaane Williams, a former tenant organizer, spoke at the protest, calling on the board to decide on the “lowest rent increase humanly possible.”
“Raising rents on tenants does not help landlords that are suffering,” Williams said to the crowd. “You can’t raise rent on people that do not have it.”
Landlords and their representatives assert larger increases are necessary to help them maintain buildings and afford taxes.
“Rent is income that buildings need to meet escalating costs, and we are hoping for an upward adjustment that recognizes the need to maintain buildings that are at and approaching 100 years old,” Michael Tobman of the Rent Stabilization Association told THE CITY.
According to an annual report the Rent Guidelines Board produces on building operating costs, buildings that contain rent stabilized apartments had expenses projected to increase 3.9% this year. Meanwhile, tenant advocates generally argue that raising rent to make up for operating expenses will only result in more evictions and homelessness.
“There are small landlords that are dealing with issues and need assistance,” Williams told THE CITY. “But we need the landlords to get help from the state and the city, and not from tenants who can’t afford it.”
Many of the protesters called for Mayor Eric Adams to step in and help facilitate a rent freeze — an action that former Mayor Bill de Blasio directed the board to take twice.
“So many people will have to choose between food and rent or a doctor and rent because of Eric Adams, ” said Ana Maria Archila of the Working Families Party to the crowd. “There’s one person in the city that can choose to freeze the rent — Eric Adams — but today chooses real estate instead of real people.”
The meeting itself was contentious, with tenant advocates yelling loudly at the board as they voted on adjustment ranges.
Adán Soltren, a lawyer appointed to the board as one of its two members representing tenants, both of whom walked out of the meeting in May, called for more public hearings in future years before the adjustment range has been decided, and having more board members represent the public.
Currently, two members of the board represent tenants, two represent landlords, and the other five, including the chair, represent the general public. All nine members are appointed by the mayor.
“If we keep approaching the problem the same way,” Soltren said, “rent stabilized tenants, the majority of which are Black and Brown low-income working class folks, will not be able to stay in their homes.”
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A 2.75% rent increase seems reasonable to me, basically in line with inflation, the costs for taxes and repairs on the building go up every year. The rest of us in market rentals put up with much higher increases.
Unfortunately 2.75% comes nowhere near actual inflation. RGB’s own data showed this increase would fail to match cost increases.
I have a great idea – let’s let the free market determine a fair rent.
When a bunch of bureaucrats, pandering politicians and professional “tenants advocates” decide what the rent should be it inevitably leads to disaster.
NYC’s decades of housing shortages and decrepit housing stock is proof of that.
there is no “free market” in housing in NYC, or anywhere else in the US, for that matter. if you want a true “free market”, then supply has to be able to expand to meet demand. This can’t happen in most of NYC, especially Manhattan, unless you are willing to get rid of zoning laws and laws restricting emptying out older, smaller buildings for demolition. outside of the vast dislocations this would create, would the result be a NYC you would want to live in?
The affordable housing market in NYC is a classic “market failure”, and it’s not because of rent stabilization. the vast majority of new affordable housing in NYC in the last 50 years has been built either through govt, by not for profits, and/or through vast subsidies.
btw, I won’t go into the huge govt subsidies that underpin the so-called “free market” in housing outside of NYC. start with the mortgage interest deduction, but also govt insurance of mortgages.
Would I want to live in a Manhattan where we got rid of ridiculous zoning rules and actually built new housing instead of letting the existing buildings decay? Yes sign me up!
For the last 10 years, the city has increased property taxes above inflation. This year the New York City water board is increasing rates by 8.5%.
The city increases costs, but won’t let rents increase to cover the costs. The city is effectively defunding housing. It won’t work well for anyone long term.
This seems very reasonable. Inflation is significantly higher than this. Social security benefits went up 3.2% this year. Minimum wage is up, as are wages. Real estate taxes have gone up more than this.
Building owners are allowed to make some money and/or break even.
These tenants are the boy who cried wolf – deBlasio spoiled them. Will they ever be OK with rates going up?
I am gradually approaching “retirement age” and have recognized that I might have to work a year or two longer than I wanted to in order to save a bit more for retirement and delay social security. Perhaps others should also be financially responsible. There are plenty of jobs out there. They might not be glamorous but they pay the bills. I know there are plenty of truly elderly people who are involved here, but most of the residents aren’t. And maybe the elderly should have thought ahead and not counted on constant charity.
Re: “Maybe the elderly should have thought ahead and not counted on constant charity.” Wow! Your tone/attitude really struck me; all that was lacking was for you to say, “Let them eat cake!”
Older residents have access to Senior Citizen Rent Increase Exemption (SCRIE) which which allows them to apply to have their freeze rent frozen, while their housing provider continues to get paid the difference by the state in the form of property tax credits. This allows our older neighbors to not be pushed out, while also ensuring we fund our limited housing stock and keep it from crumbling.
If you are disabled you have access to a similar program via DRIE.
If affordable housing is important to us, we need to demand our elected reps fund it. Instead today they actively look for ways to defund it by raising taxes, utils, and other costs directly in their control.
SCRIE is means tested. Not all elderly have access to it.
Comments here as usual are out of touch . It’s important to note that the wealthy consider these increases “ reasonable” .how about we ask working class people if it’s reasonable or not
Whether the increases are “reasonable” or not, is tied to economic reality. Costs to provide housing went up, significantly – so rent has to go up. Don’t like it? Give your city council members a call and ask why they raised water costs by 8.5% this year. Ask them why property taxes are going up so fast. If they paused these cost increases, rents wouldn’t have to go up as much.
We need to stop the myth that only “working class” people live in rent stabilized apartments. I personally know many wealthy people who enjoy this entitlement.
Assemblywoman Linda Rosenthal pays $1.5K per month for a five room apartment on the UWS she inherited from her parents. I don’t consider her “working class”.
Ultimately, rent stabilization hurts far more people than it allegedly helps.
She’s the exception but yeah.
Have working class people ever supported a rent increase at all? They do not seem to be very reasonable and in touch with the real world.
Biden is going to unfortunately lose the election because of inflation. Costs are going up for everyone. Everyone has to pay their fair share. Wages have also been going up to partially offset this (including social security and other government benefits).
Please be realistic.
What right does the Government have to determine what rent you can charge for your property ?
The right of the stronger. Same as govt’s right to levy taxes. Govt is stronger because so far, the generality of citizens have (implicitly or explicitly) agreed to pool their strengths for what they believe is the common good.
What’s the combined stabilized and public housing percentage in NYC? 15-20% is my guess.
your guess is way off.
In 2021 (most recent data i could find), there were 3,644,000 housing units of all types in NYC. this includes single family homes, condos, and coops as well as rental units. this is approx, of course (rounding).
this included 1,006,000 rent stabilized units, 174,000 public housing units, 54,360 “other regulated” units,. and 16,400 rent controlled units. Add these latter together and you get 34.3% of all units.
of rental units alone, the figure for regulated units is way over 50%.
source: https://library.csi.cuny.edu/c.php?g=452337&p=3089687
It is an insult to our intelligence that in 2024 anyone in NYC is complaining about a 2.75% rent increase. To me it looks like Christmas came in June for these tenants. I am hard pressed to see how LL’s with rent stabilized/controlled apartments can keep up with routine maintenance let alone fund emergency repairs with such a small increase in allowable rent.
What a lot of people don’t consider is that 2.75% applies to all stabilized lease amounts. I.e. a $3500/month lease means almost $100/month increase. Gone are the days of “wow they only pay $1500/month”. My stabilized lease has gone up almost $500 in the past few years. Luckily I can manage this, but it is understandable that some cannot.
I don’t understand why building owners continue to cry poverty yet still own the building(s). Obviously they are making a profit AND a lower rent increase is cutting into their profits.
What, you suddenly now believe in free markets? That the buy-sell mechanism for rent-controlled building is somehow, magically, fully efficient, despite the income stream not being so?
I don’t understand why renters also continue to cry poverty yet still live in the building(s). Obviously, it’s still way better than free market rent AND any rent increase is cutting into their savings.
Theres nobody to sell them to. Nobody wants to buy a building that is legally obligated to lose money in perpetuity. There is no profit to be had. Our entire rent roll goes directly to property tax.
Disgraceful! I cannot afford a 5.5 increase for a two year lease. My landlord can well afford to upkeep my large building without hurting us senior citizens. I am furious.
If you’re a senior citizen living in a rent stabilized apartment then you likely have been living there for decades.
As such, you should have plenty of savings due to your rent expense being ridiculously low all these years.
Therefore, you should be able to afford a long overdue rent increase of 5.5%.
This is some creative logic.
How did you determine this? Have you reviewed their P/L? did you look at their property tax bill? Is your unit rent controlled or rent stabilized?