Rent Guidelines Board Scales Back Proposed Hikes on Rent-Stabilized Units Amid Mounting Tensions in NYC Housing Debate

By: Jerome Brookshire

In a rare and closely watched reversal, the New York City Rent Guidelines Board (RGB) has revised downward its proposed rent hikes on nearly one million rent-stabilized apartments, a move that has reignited the contentious debate over affordability, landlord viability, and the city’s aging housing stock. As reported by The New York Post, the board’s latest vote on Tuesday lowered the proposed increase for two-year leases to a range of 3.75% to 7.75%, down from the minimum of 4.75% floated just last month.

The one-year lease hike proposal remains unchanged at 1.75% to 4.75%, but the shift on two-year leases marks a significant — and surprising — retreat from the RGB’s prior stance. According to the information provided in The New York Post report, the decision follows mounting political and public pressure from both Mayor Eric Adams and tenant advocacy groups, all while property owners warn the cuts will deepen a growing crisis in building maintenance and viability.

“This process is supposed to be based on the math,” said Ann Korchak, president of the Small Property Owners of New York, in a statement quoted by The New York Post. “We asked for at least a 6.3% increase — and even that is modest, given the rise in property taxes, insurance, and utility costs.” Korchak went on to argue that unless City Hall takes steps to freeze escalating municipal expenses, landlords will have no choice but to defer repairs or sell off properties, threatening the health of New York’s vital rent-stabilized housing stock.

The Rent Guidelines Board, a nine-member body composed of two landlord representatives, two tenant advocates, and five public members, is responsible for setting allowable rent increases on the city’s nearly one million rent-stabilized apartments. As The New York Post report noted, the board has already approved rent hikes totaling 9% over the past three years, but Tuesday’s recalibration suggests a more cautious approach amid heightened political sensitivities.

At an unrelated press conference the same day, Mayor Eric Adams weighed in, repeating his call for moderation. “New Yorkers are hurting,” he said. “I’ve been very clear — we need a balance.” His comments echoed earlier concerns about the now-revised proposals, which he had previously described as “far too high.”

Tenant advocates, however, remained sharply critical of any rent increase. The Legal Aid Society, one of the city’s leading public interest legal groups, issued a strongly worded statement condemning the proposed hikes as “reckless.” According to the report in The New York Post, the group argued that landlords have already seen healthy returns post-pandemic and that further increases will disproportionately impact low-income tenants already teetering on the edge of eviction.

“In the weeks ahead, we urge the Board to listen to tenants, hear their concerns, and recognize how reckless it would be to raise rents on poor and working-class households in these unprecedented times,” the group said.

While the RGB’s votes are non-binding until the final decision — scheduled for June 25 — Tuesday’s revision sends a strong signal that public and political pressure may continue to shape the final outcome, as was reported by The New York Post. The board’s decisions directly affect leases commencing on or after October 1, and any movement, up or down, can have substantial economic consequences for landlords, tenants, and the broader housing market.

Landlords, especially small building owners, have grown increasingly vocal in their frustration. They argue that political interference has warped the RGB’s original mandate — which was to base decisions on hard economic data, including maintenance costs, inflation, interest rates, and market conditions. Without sufficient increases to cover their rising expenses, these owners claim they’re being asked to subsidize city housing policy at their own financial peril.

The city’s rent-stabilized system is under enormous strain. Aging buildings require constant investment, and deferred maintenance is rapidly becoming a citywide issue, especially in outer-borough neighborhoods where rents remain low, but costs continue to rise, The New York Post report explained. Critics argue that without consistent and adequate rent adjustments, the system risks collapse — not from eviction waves, but from landlord attrition and disrepair.

At the same time, tenant organizers see the RGB’s role as a protector of vulnerable renters, particularly as New York continues to struggle with post-pandemic inflation, wage stagnation, and housing shortages. With shelter costs comprising more than a third of the average New Yorker’s income, even modest rent increases can be debilitating, they argue.

As the June 25 final vote approaches, both sides are intensifying their lobbying efforts. Landlord groups are demanding that the RGB factor in real-world economics, while tenant advocates are planning demonstrations and public testimony to call for a rent freeze, if not a rollback.

The upcoming decision may not satisfy either side — but it will set the tone for housing policy in the city for the coming year. In a moment when the stakes for New Yorkers couldn’t be higher, the RGB finds itself under a spotlight more intense than ever before.