Residents of New York City express their worries about potential rent increases.
As the Rent Guidelines Board prepares for a crucial vote, New York City is on edge about potential rent increases affecting millions of tenants. The proposals could see rents rise significantly for one- and two-year leases, while public sentiment leans heavily towards a rent freeze. With advocates arguing for tenant protections amid a housing affordability crisis, the decisions made will have lasting impacts on the city’s rental market and the livelihoods of tenants across New York.
New York City is bracing for a potential rent increase as the Rent Guidelines Board (RGB) prepares to vote on June 27, 2023, regarding adjustments for rent-stabilized buildings. Amid an ongoing housing and affordability crisis, the RGB is considering proposals that could increase rents for one-year leases by 1.75% to 4.75% and for two-year leases by 3.75% to 7.75%. Alternatively, there is also the possibility of implementing a rent freeze.
The decisions made by the RGB will directly impact approximately 2.4 million tenants living in rent-stabilized apartments, which make up about half of the city’s rental market, totaling around 1 million units. The RGB’s authority covers most rental apartments built before 1974 that have over six units, as well as city-subsidized affordable housing.
In recent years, under the administration of Mayor Eric Adams, the RGB has approved cumulative rent increases of 9% over three years. This stands in stark contrast to the previous administration of former Mayor Bill de Blasio, which saw three consecutive years of rent freezes.
Public sentiment is significantly leaning toward a rent freeze, as per a recent poll conducted in April 2023, which indicated that 78% of likely New York City voters are in favor of halting rent increases. The poll demonstrated bipartisan support, with 83% of Democrats and 63% of Republicans advocating for this move.
Advocates for a rent freeze argue that landlords are already benefitting from high profits and should not require further increases to cover maintenance costs. They contend that many rent-stabilized households earn a median income of $60,000, considerably lower than the median income for all renters in the city, and they continue to grapple with a rising cost of living.
On the other hand, landlords assert that rent increases are imperative due to soaring costs associated with insurance, utilities, labor, and property maintenance. They point to the 2019 Housing Stability and Tenant Protection Act, which they claim limits their ability to raise rents or recover expenses related to necessary building upgrades, thereby threatening the financial viability of many rent-stabilized buildings.
A June 2023 report indicated that while the net operating income for landlords has risen by an average of 12%, many still experience challenges in covering their mounting expenses. The current vacancy rate for rent-stabilized units stands at a mere 0.98%, highlighting a critical shortage of available housing and raising concerns about the future accessibility of rental properties in the city.
Some candidates for mayor have expressed support for a rent freeze, including several Democrats and Queens Assembly Member Zohran Mamdani. Contrarily, Andrew Cuomo has voiced opposition, suggesting that landlords must be able to manage their expenses. Mayor Adams himself has conveyed worries regarding the financial stability of property owners, leading him to not support a rent freeze.
Certain programs, such as the Senior Citizen Rent Increase Exemption (SCRIE) and the Disability Rent Increase Exemption (DRIE), provide targeted rent freezes for seniors and disabled individuals. However, advocates maintain that middle-income renters remain vulnerable and need further protections.
As discussions about rent increases or freezes unfold, community mobilization is becoming increasingly vital for tenants under financial strain. Concerns about landlord transparency regarding maintenance funding have led to a prevalent sense of mistrust within the community.
The New York Apartment Association has emerged as a significant supporter of Cuomo, backing his campaign while pledging substantial funding to further his housing agenda. As the landscape of New York’s housing market evolves, addressing affordability will remain a key concern for candidates in the upcoming elections.
Overall, with the RGB set to make critical decisions on rent stabilization, tenants and landlords alike await developments in this pivotal moment that could shape the future of housing in New York City.
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