New Yorkers in more than 1 million stabilized apartments face the largest rent increase in nearly a decade after a panel approved a 3.25% hike for one-year leases and a 5% rise for two-year leases.
The decision by the nine-member Rent Guidelines Board of mayoral appointees reflects the political promises of Mayor Eric Adams, a landlord himself who has signaled strong support for small businesses and property owners, many of whom are facing mounting operating costs under soaring inflation.
Under former Mayor Bill de Blasio, the board kept rates at historic lows, voting for rent freezes in four of the past eight years. While most current board members are Adams appointees, some have carried over from his predecessor.
More than 2 million New Yorkers, or as many as 1 in 3 residents, stand to be affected by the decision. The increases are still significantly smaller than those in market-rate apartments, where the median rent increased 29.8% compared with a year prior as of May, according to a report by the real estate brokerage firm Douglas Elliman. The changes will take effect on leases that begin between Oct. 1 and Sept. 20, 2023.
The decision is in line with what the board approved in a 5-4 preliminary vote last month.