A rent increase is almost inevitable but just how much remains unclear
Just a few months ago, it seemed that the odds of rent-stabilized tenants seeing a historic third consecutive year of rent freezes were in high favor. But things took a turn in late April when the Rent Guidelines Board held its preliminary vote and voted in favor of rent increases. Rent-stabilized tenants are still holding out hope that the board will opt for another freeze but a new set of data makes it even more unlikely.
According to the Wall Street Journal, data collected by the Rent Guidelines Board show that while the economy has seemingly strengthened, operating costs have risen 6.2 percent over the past year and property taxes have gone up by 7.8 percent. Meanwhile, unemployment and poverty rates have decreased, and though low-income tenants remain financially burdened, things seem to have improved overall.
All this looks to be setting the foundation for rent hikes that, if passed, will go into effect beginning October 1. The question that remains unanswered though is just how much will it rise. The Rent Guidelines Board is advocating for increases of one to three percent on one-year leases and two to four percent on two-year leases.
The final vote is scheduled to take place on Tuesday, June 27 at 7 p.m.
- Decision on Regulated Rents Comes Due in New York [Wall Street Journal]
- Rent-stabilized New Yorkers face increases of as much as 4% [Curbed]
- Rent-stabilized tenants in NYC may get another rent freeze [Curbed]
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