NYC Witnesses Price Hike in Rent-Stabilized Apartments
Rent-stabilized apartments in New York City recently experienced a sharp hike in price. This is the biggest price increase in a decade.
The hike was approved by the New York City Rent Guidelines Board in June 2022 with a 5-4 margin.
Current tenants will be subject to hikes of 3.25% for one-year leases and 5% for two-year leases when they renew their leases between Saturday, October 1st, and September 30, 2022.
Rent stabilization offers real value for households that are fortunate enough to find a stabilized unit. They stay in their homes for longer and experience less housing instability, especially in more expensive neighborhoods.
More than two million New Yorkers currently occupy the city’s one million rent-stabilized apartments and are significantly affected by this change.
Lower-income New Yorkers will be most impacted by this increase, which is valid for leases starting on or after October 1.
This change comes after two years in which rents have either been frozen or increased modestly due to the COVID-19 pandemic, as well as eight years in which increases have generally been minimal under the de Blasio administration.
Rent is not the only expense experiencing a period of escalating inflation. The price of living overall has increased significantly, including necessities like groceries and gas.
Real estate company Douglas Elliman reports that the net effective median rent in Manhattan increased to $4,059 in August.