Landlords want tenants to pay more as their expenses increase — tenants in growing affordability crisis
Shouts of “shame!” from the audience of the final NYC Rent Guidelines (RGB) vote, held on June 17, could be heard echoing through the Hunter College auditorium as the board announced that for the third year in a row, rent will be increased on stabilized units. The RGB approved 2.75% for one year leases, and 5.25% for two year leases.
The increase will apply to rent renewals between October 2024 and September 2025. The board voted 5-4 in favor of the increases.
“Property taxes continue to increase, insurance costs are skyrocketing, utilities are going up double digits, water and sewer costs are going up 8.5% … Advancing a rent adjustment in line with inflation is the bare minimum,” said owner member Christina Smyth, advocating for a rent increase.
The RGB has been holding public hearings since March. At the June 5 Brooklyn Public Hearing, the majority of the speakers testified for either 0% rent increases, or rent rollbacks. Many of the tenants at the public hearings testified against landlords doing patch-up jobs for things such as holes in their walls and ceilings, or mold. Many spoke about rats or roaches in their apartments.
Robert Ehrlich, an owner member of the RGB, in his support for rent increases. He stated that after the RGB’s analysis, it is apparent that “rent stabilized buildings are in severe financial distress.” Ehrlich and Smyth argued that the rent increases are a necessity to improve the conditions of the buildings.
Amy, a tenant organizer for the Bushwick Housing Independence project (BHIP), spoke at the June 5 Brooklyn hearing. She explained that many residents in her neighborhood had no idea that the RGB hearings existed.
“I’m sure you know there are still working class families and low income families living [in Bushwick]. It’s a shame that this board doesn’t prioritize outreach to them … We’re asking for a rent rollback, and to stop lining landlords pockets. Please consider New Yorkers. Everyday New Yorkers,” she said.
Before the final vote, tenant board member Adán Soltren spoke to condemn the RGB process and advocate for tenants. He questioned the increase of 2.75%, explaining that it is not enough to cover “maintenance repairs that [the RGB] so desperately claim is part of your rationale for your rent increase in the first place.”
“You wonder why thousands of people lack faith in this board and this process when nearly every year, despite the data on the affordability crisis and the well documented exploitation and abuse of our housing system and tenants by landlords and greedy corporations for the last 50 years, the board continues to make decisions to plunge working class, low income, and Black and Brown New Yorkers further into crisis and despair,” Soltren said.
In his testimony at the Brooklyn hearing NYC Council Member Lincoln Restler supported 0% increases, urging the board to freeze the rent.
“We cannot afford to see more New Yorkers unable to pay their rent, forced into our shelter system, because of the increases of this board,” he said.
After the vote was announced, Restler advocated for long term goals to help rent-burdened tenants.
“More than one third of New Yorkers are paying a majority of their income in rent. We need sustainable investments that increase affordable housing, not steep rent hikes that make it harder for working people to afford their homes,” he stated.
NYC Council Member Jennifer Gutierrez stated that the most recent vote will “create unthinkable burdens on households and families, and jeopardizes much-needed stability for our economy.” She explained that more affordable housing plans are a necessity, such as Homes Now, Homes for Generations, which invests money to build and repair affordable homes throughout the city.
“Investing in the Homes Now plan this budget cycle would be transformational in preserving and creating housing for New Yorkers, so I am hopeful that the Mayor will see this as an opportunity to be collaborative in delivering the housing stability he’s promised,” she said.
Rolando Guzman, the deputy director of community preservation for St. Nicks Alliance, explained that the recent rent increases are concerning, putting “a large part of our community at risk of homelessness.” However, Guzman stated that for “tenants that have questions about their rent increases, St Nicks Alliance is here to help.”
According to the NYC Rent Guidelines Board site, “The RGB consists of nine members, all of whom are appointed by the Mayor. Two members are appointed to represent tenant interests. Two members are appointed to represent owner interests. Five members (including the chairperson) are appointed to represent the general public.
In a statement after the RGB voted, NYC Mayor Eric Adams commended the board’s challenge of “[protecting] tenants from unfair rent increases while also protecting the future of rent stabilized homes.” Adams sees building more housing as the solution to lowering rents.
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