The Rental Council has signed 3.25% increases for new one-year leases for approximately 1 million stabilized Big Apple rental apartments as landlords and tenants face spiraling inflation and a potential recession.
New two-year rental contracts for stabilized rental housing could jump 5% as a result of a vote on board Tuesday night by 5-4.
The vote comes a month after the rental board set ranges ranging from 2 to 4 percent for a one-year lease and 4 to 6 percent for a two-year lease. Initially, employees offered potentially increased rents of up to 9 percent on two-year leases, which led to fierce rejection by the Municipal Council.
The mayor oversees all nine appointments, but has so far nominated only three members, as they meet deadlines. Mayor Bill de Blasio often pointed to the zero increases approved by his rental board in 2015 and 2016.
Rents set by the board affect one in three households in New York.
This is the largest increase in rents for regulated apartments in New York since at least 2013, when the board signed a 4 percent increase for one-year rents and a 7.75 percent increase for two-year rents.
Mayor Eric Adams called the council’s decision on rental guidelines “disappointing”. AP / Andrew Harnik
Tenants’ activists say the current ranges are still too large and are likely to force people to flee their homes as their budgets are already burdened by inflation – while landlords say they need even bigger increases to cope with rising prices.
“While we have raised our voices and managed to reduce the increases, the decision taken by the Rental Guidelines Council today will unfortunately be a burden on tenants at this difficult time – and it is disappointing,” Mayor Eric Adams said in a statement after the vote.
A community housing improvement program, a group of homeowners, described the increase as too low.
“The data is clear. The adjustment, approved by RGB today, will not put a penny in the pockets of small property owners, “said Jay Martin, the group’s chief executive.
“RGB has simply taken steps to limit its losses for next year.”
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