Introduction to Rent Freeze
At least half of the Democratic mayoral candidates are advocating for freezing rent for regulated apartments in response to New York City’s growing affordability crisis, entering a bitterly divided debate over the proposal’s feasibility and benefits.
What is a Rent Freeze?
A rent freeze would prevent landlords from increasing rent for rent-stabilized buildings, which advocates say is a necessary measure to prevent widespread evictions. But critics respond that rent freezes unfairly impact small property owners, limit capital improvement projects and harm the city’s overall economy.
Rent-Stabilized Apartments
About half of the rental apartments in New York City — just over one million — are rent-stabilized, according to an amNewYork review. Most buildings with more than six rental units built before 1974 are rent-stabilized, as well as newly built affordable housing receiving tax breaks and city subsidies.
How Rent Increases are Determined
That means, under the guidelines of a 2019 rent law, landlords cannot raise rents without citywide approval from the Rent Guidelines Board (RGB), the city body created to regulate rent-stabilized apartments. The RBG sets rent increases each year after a series of public hearings, with a rent freeze simply referring to a 0% increase.
Impact on Renters
Renters in rent-stabilized apartments have a lower median income than their counterparts in unregulated apartments, according to a 2022 report from New York University’s Furman Center. But buildings also face maintenance deficiencies and physical distress because of the relatively low rental costs.
A Fight Between Tenants and Landlords
City Comptroller Brad Lander, the city’s elected chief financial officer who is running for mayor, petitioned the RGB for a rent freeze for 2025-26 in an April testimony, pointing out that landlords’ net income increased by 8% from 2022 to 2023, adjusting for inflation.
“New York City is in the midst of a housing emergency and tenants are struggling to make ends meet,” Lander said. “The data laid out by the RGB demonstrates that this year, landlords have more than the income they need to keep the heat on, make repairs, pay their supers a living wage, and keep their buildings well-maintained.”
But Ann Korchak — president of Small Property Owners of New York, a landlord advocacy group — told amNewYork that those numbers ignore the necessary capital improvements and debts that landlords have to pay.
“That’s not profit,” Korchak said. “That’s the cash that’s left to pay your debt, and the cash that’s left to pay your capital improvements.”
Advocates’ Perspective
Cea Weaver, director of advocacy group Housing Justice for All, told amNewYork that a rent freeze is necessary to address New York City’s affordability crisis.
“Any increase is too much right now,” Weaver said. “People are really struggling to afford the basics. It’s really about stopping housing costs from going up — tenants need a break.”
Weaver said keeping rent-stabilized apartments affordable is important to maintaining the city’s diversity.
“Rent stabilization is the real bedrock of what makes New York an affordable place for working-class, middle-class and low-income families of all races, genders and generations,” Weaver said. “It’s the bedrock of New York City’s housing stock, and right now, tenants can’t afford their rent.”
Landlords’ Perspective
Korchak said the same inflationary costs hurting tenants are hitting landlords, especially small or family-owned buildings, which her organization represents.
“I see my role as being the voice saying what’s really happening in these properties, and a rent freeze just is not realistic,” Korchak said. “And in every single service, every single product that people buy and use, is increasing, and housing is not excluded from that.”
Expert Insights
Eric Kober, a senior fellow specializing in housing policy at the Manhattan Institute, a conservative think tank, told amNewYork that the problem lies in the Housing Stability & Tenant Protection Act of 2019, which added regulations for rent-stabilized housing.
The 2019 law restricted case-by-case rent increases while prohibiting owners from increasing rents after a tenant vacates a unit. While housing advocates celebrated the tenant protections, Kober said the law upended the housing system by removing streams of income for landlords.
“These are all ways to get money into buildings while maintaining rent-stabilization for existing tenants, and they were all eliminated as a way of punishing landlords in the 2019 rent law,” Kober said. “If you want housing to be properly maintained, you have to allow some avenues for landlords to make money.”
Conclusion
The debate over a rent freeze in New York City highlights the complex issues surrounding affordable housing and the need for a balanced approach that considers the interests of both tenants and landlords. While a rent freeze may provide temporary relief for tenants, it is crucial to address the underlying causes of the affordability crisis and work towards long-term solutions that promote affordable housing and maintain the city’s diversity.
FAQs
- What is a rent freeze, and how does it affect rent-stabilized apartments in New York City?
A rent freeze prevents landlords from increasing rent for rent-stabilized buildings, which advocates say is necessary to prevent widespread evictions. - How many rental apartments in New York City are rent-stabilized?
About half of the rental apartments in New York City — just over one million — are rent-stabilized. - What is the Rent Guidelines Board (RGB), and what role does it play in determining rent increases?
The RGB sets rent increases each year after a series of public hearings, with a rent freeze simply referring to a 0% increase. - What are the arguments for and against a rent freeze?
Advocates argue that a rent freeze is necessary to address the affordability crisis and prevent evictions, while critics argue that it unfairly impacts small property owners, limits capital improvement projects, and harms the city’s overall economy. - What is the long-term solution to the housing crisis, according to advocates?
The real, long-term solution to the housing crisis is public investment — publicly separated, permanently affordable housing.
