A report from the Rent Guidelines Board suggested a 4% rent hike on rent stabilized apartments to offset rising operating expenses, nearly 1% higher than what landlords could increase rent by in 2023.
Operating expenses–including maintenance, insurance, fuel and taxes–jumped by 4% between March 2024 and March 2023 due to inflation.
In New York City, one of the most expensive cities to live in the United States, only 3% of apartments are rent stabilized, according to the NYC Rent Guideline Board. Rent stabilization is a form of rent regulation that serves as a tool to combat the ongoing housing crisis by making sure that some units remain affordable.
Rent stabilization, often confused with affordable housing, reveals its difference in the area of requirements. There isn’t an income requirement. Renters benefiting from rent stabilization are entitled to a lifelong lease.
A data set from nyc.gov reveals that the majority of renters are rent burdened, with rent accounting for more than 30% of their income. What’s more, 30% of low-income renters in NYC spend more than 50% of their pre-tax income on housing.
Today, the median gross rent for a Manhattan stabilized unit costs $1,500. Although a 4% increase would raise rent by $60, the increased cost of living may serve as a hardship to leasers.
