Rent increases on one- and two-year lease renewals for rent-stabilized tenants are determined by the Rent Guidelines Board, whose members are appointed by the mayor, so these hikes can change depending on who is in office, says Sam Himmelstein, a lawyer at Himmelstein, McConnell, Gribbin & Joseph, who represents residential and commercial tenants and tenant associations.

In late June, the RGB voted 5-4 in favor of a rent increase of 3.25 percent for one-year leases that begin between October 1st, 2022 and September 30th, 2023; and 5 percent for two-year leases that start during the same period.

This has come as an unpleasant surprise to many rent-stabilized NYC tenants, since these are the steepest rent increases in nearly a decade. In 2020, for instance, in response to financial hardships caused by the pandemic, there was a rent freeze on one-year leases. (Note that rent increases for rent-controlled apartments, by contrast, are based on the five most-recent RGB annual rent increases for one-year renewals, or 7.5 percent—whichever is less.)

The RGB members are appointed by the mayor, and they determine what the increases should be,” Himmelstein says. “The board is a mix of tenant, landlord, and public representatives, and every year there are raucous meetings where each group tries to advocate for their side.”

While some argue that a 5 percent rent increase isn’t bad—particularly considering the very steep rent increases many market-rate tenants in NYC have been facing–Himmelstein points out that for a low-income family, it can pose quite a hardship. The New York Times notes that the median income for people in rent-stabilized apartments is $47,000.

So why the larger increase this year, when many are still struggling economically? Mayor Eric Adams says that these increases are a middle ground between tenant advocates, who wanted another rent freeze, and landlord advocates, who wanted even bigger increases. He argues that the hikes are necessary to support small mom-and-pop landlords after over two years of the Covid pandemic.

But as Himmelstein notes, most rent-stabilized apartments are in larger buildings.

“The vast majority of stabilized tenants live in bigger buildings that are owned by landlords who own multiple properties—not mom-and-pops,” he says. “This increase is hurtful to tenants.”

Related:

Ask Sam: My rent is going up by 30 percent. Can I fight this increase? (sponsored)

Ask Sam: I found out my apartment used to be rent-stabilized. Now what? (sponsored)

Ask Sam: How do I find out if my apartment should be rent-stabilized—and the landlord owes me money? (sponsored)