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CBS News
2 days ago
- Business
- CBS News
NYC Rent Guidelines Board votes for 4.5% increase on 2-year leases, 3% on 1-year leases
The New York City Rent Guidelines Board voted on Monday night to increase rates for rent-stabilized apartments. By a 5-4 count, board members arrived at a 4.5% increase for two-year-leases and a 3% hike for one-year leases, after considering raising rents 3.75% and 7.75%, and 1.75% and 4.75%, respectively. The board's decision will take effect for leases between Oct. 1 of this year and Sept. 30, 2026. Tenants vs. landlords Earlier this spring, the Rent Guidelines Board held a preliminary vote where it agreed to the range of rent increases, only to later agree to consider lower-range increases for two-year leases. Tenants in rent-stabilized apartments rallied Monday ahead of the crucial vote, calling on the board to adopt the smallest increases. Landlords said they shouldn't have to eat the cost of rising costs for maintenance, insurances and taxes, but tenants told CBS News New York neither should they. "Operating expenses are rising. Rents have to rise to meet those increased expenses, or else you're defunding the buildings and defunded buildings lead to distressed buildings, which leads to a reduction in the quality of housing," said Ann Korchak, board president of Small Property Owners of NY. "I've been in my building for 16 years. What happened to the money that they got from me for my rent? What happened to the money? What did they do? Did they [go] on vacation? Did they buy another building?" wondered Mercedes Escoto. Rent hike or freeze a key issue in NYC mayor's race The mayor appoints the nine-member board, and the question of a rent increase had become a major issue in the mayoral race. Queens Assemblyman Zohran Mamdani declared victory in the Democratic primary last week on promises to freeze the rent for the entirety of his term. Mamdani's success is expected to made official Tuesday, when the Board of Elections will release its ranked choice voting result, which is expected to show him crossing 50%, and therefore winning. Mayor Eric Adams, who is seeking re-election but is running as an independent this time, had sympathized with the plight of landlords, but also made it clear in a statement on social media he didn't want to see tenants have to deal with higher increases. "One of the largest costs on kitchen tables each month is rent, and right now, New Yorkers are feeling the squeeze of a historically tight housing market with a 1.4 percent vacancy rate. That is why I am urging the Rent Guidelines Board to adopt the lowest increase possible," Adams said. "But let's be clear, demands to 'freeze the rent' are short-sighted and risk worsening already deteriorating housing conditions -- putting tenants' health and safety in harm's way. This would be disastrous for the quality of rent-stabilized homes, making it impossible for owners, particularly small property owners, to put money back into their buildings, make repairs, and maintain their buildings."
CBS News
27-05-2025
- Business
- CBS News
NYC Rent Guidelines Board votes to lower range for rent increase on 2-year leases
New York City's Rent Guidelines Board held a rare revote on Tuesday morning and decided to amend the proposed range by which rents could be raised for millions of city residents living in rent-stabilized apartments. To be clear, the revote was not for the final rent increase. That final vote will be held at the end of June. Here's what the Rent Guidelines Board decided The nine-member board, appointed by the mayor, voted 6-2, with one member absent, to lower the proposed range for two-year lease increases to between 3.75% and 7.75%. That's down 1% from last month's preliminary vote, which was on a range of 4.75% to 7.75%. Proposed one-year lease hikes remain unchanged at between 1.75% and 4.75%. The revote followed public outcry, internal pushback and criticism from Mayor Eric Adams, who called the previous range "too unreasonable a burden" for tenants. "That's not enough. Tenants this year need a rent freeze. We've had unprecedented increases in landlord profit -- 12% from the previous year. Landlord profits are up, and tenant wages in experiences are down," said Charlie Dulik, director of organizing at nonprofit Housing Conservation Coordinators. Landlords claim they can't keep up with rising costs Manhattan Isaac Rabinovitch said he owns a small, four-unit building, and that he's not a big landlord or developer. He claims he loses money every year just trying to keep up. "The Rent Guidelines Board data clearly show owners need a 6% to 7% increase just to keep up with the rising costs from the city," Rabinovitch said. "We've seen our property tax bills go up 8% or more year over a year. The water board is currently voting on a 3.7% water increase. We're seeing Con Ed raise their rates by 11%." Meanwhile, the New York State Tenant Bloc says the board's own report shows landlord income rose 12% last year -- the biggest jump in three decades. The final vote on the exact increases is scheduled for June 27. Until then, public hearings will be held.
