The mayor-appointed nine-person panel, which determines rent adjustments for the approximately one million rent-stabilized apartments in New York City, voted five to four to increase rents by 3.25% for one-year leases and 5% for two-year leases. The rates fall in the middle of ranges approved by the board in May, 2 and 4% for one-year leases and 4 and 6% for two-year leases. This represents a compromise as landlords sought even higher increases, arguing that building maintenance and insurance costs have soared. At the same time, many tenants pushed for rent freezes and rollbacks, noting the rising cost of living in New York City amidst pre-existing poor building conditions. And rising inflation has impacted both sides. 

This is the first vote under Mayor Adams’ administration, exhibiting a departure from the approach of his predecessor. Throughout former Mayor Bill de Blasio’s tenure, the board kept rent increases at historic lows, with the highest annual increases at 1.5% on one-year leases and 2.75% on two-year leases. The last time there was such a significant increase, 4% on one-year leases and 7.75% on two-year leases, was in 2013 during Michael Bloomberg’s time in office. The increases approved on Tuesday will apply to leases that begin on or after October 1st.