NYC Approves 2.75% Rent Hike for 1M Rent-Stabilized Apts 

The Rent Guidelines Board has approved rent increases for New York City’s nearly 1 million rent-stabilized apartments, with rates set at 2.75 percent for one-year leases and 5.25 percent for two-year leases.  

The decision followed a raucous meeting that included protests and arrests. Tenant activists called for a rent freeze due to the city’s low rental vacancy rate, while landlord representatives argued for higher increases to cover rising operating costs. According to Moody’s CRE data, New York’s market-rate units averaged an asking price of $4,120, amounting to 57.1% of annual household income, the highest rent-to-income ratio in the nation which had an average of 26.8% in Q1 2024.  

“Rent-stabilization units are typically cheaper but remain controversial given their impact on existing supply,” said Mary Le, Moody’s economist, and Nick Luettke, Moody’s associate economist. “…The approved rent increases could damage the rent stabilization system which was intended to protect tenants from steep increases. Instead, further hikes could result in the reduction of currently rent-stabilized apartments as tenants move out, pushing more renters towards the already expensive market-rate housing, which will likely increase demand and further exacerbate housing affordability issues.”