Image courtesy of Maxim Pierre on Flickr
The panel that determines the percentage landlords are allowed to raise the rent for the roughly one million rent-stabilized apartments in New York City this week discussed a proposal for the most significant hike in nearly two decades. During a meeting on Thursday, the Rent Guidelines Board weighed a proposed 8.25 percent increase for one-year leases and a 15.75 percent increase for two-year leases, as Patch reported. While the board likely won’t approve the nearly 16 percent increase, rent hikes are still expected in response to a drop in operating income for landlords.
The nine-member panel is responsible for adjusting the cost of rent for the one million rent-stabilized apartments across the five boroughs. Appointed by the mayor, the panel consists of two representatives for landlords and two for tenants, with the remaining members representing the public.
Using a variety of formulas, the board comes up with a set of proposed rent increases. This year, the highest increases are 8.25 percent for one-year leases and 15.75 percent for two-year leases, and the lowest increases proposed are 5.3 percent for one-year leases and 6.6 percent for two-year leases.
The proposed increase takes into landlord operating costs, which according to data from the board, have increased. Fuel costs rose by nearly 20 percent this year, while insurance costs went up 13 percent and maintenance costs increased upwards of 9 percent, according to the New York Times. The board also considers other factors, including inflation, eviction rates, employment rates, affordability, and more.
Earlier this month, a report from the board found a majority of NYC’s one million rent-stabilized tenants paid roughly one-third or more of their entire income on rent in 2022. Tenants who spend more than 30 percent of their income on rent are considered rent burdened, according to federal guidelines.
Last year, the RGB approved the highest rent hike for NYC rent-stabilized apartments in a decade. The RGB voted to approve a 3.25 percent increase for one-year leases and 5 percent for two-year leases that started on or after October 2022. The board cited inflation and the increasing cost of operations and maintenance for the rent increase.
The board’s next public meeting will be held on April 27 followed by a preliminary vote on May 2.
- A majority of NYC’s rent-stabilized tenants spent over a third of income on housing last year
- NYC’s stabilized apartments will see rent increases of 3.25% and 5%
- Rent Guidelines Board set to approve biggest rent hike for NYC’s stabilized apartments in a decade