Rent Hike Looms for Rent Stabilized Leases
A preliminary vote on April 30, 2025 by New York City’s Rent Guidelines Board (RGB) delivered news of an increase for rent-stabilized apartments in a range of 1.75% to 4.75% on one-year leases and 4.75% to 7.75% on two-year leases starting on or after October 1, 2025. Although the final maximum increase is subject to another vote in the next few months, the preliminary vote reportedly suggests that “the final number will be in line with the most recent rent increases.” In 2024, the RGB backed an increase range of 2% to 4.5% and 4% to 6.5% for one- and two-year leases, with the final maximum increase being 2.75% and 5.25%. In the past two decades, the highest one-year maximum increase for a one-year lease was 4.5% in 2008. Response to the news sparked protests from tenant activist groups which were advocating for a freeze on rent increases, something that Mayor Adams declined to endorse. In contrast, landlord groups complained that the ranges were too low, the Small Property Owners of New York group advocating for a 6.3% starting point of rent increase of all lease lengths. Despite pointing out that due to increasing property taxes and rising insurance fees and fuel prices the cost of maintaining rent-stabilized buildings has gone up, an RGB study of the most recent data available reportedly indicated that the net income for stabilized landlords rose 12% in 2023 – a percentage that varies depending on geography. Manhattan below 96th Street saw a net income growth of 23% at the high with the Bronx seeing a nominal growth of 0.08%, while net income growth in Upper Manhattan, Brooklyn, and Queens ranging 10% and 11%. Appointed by the Mayor, the nine-person board that is selected by the mayor has “so far set maximum increases at around 3%” under the Adams administration, compared to a range of 0% and 1.5% under the previous administration.