Two million rent-stabilized tenants will see their rents rise after the Rent Guidelines Board voted 5-4 to implement the highest rent hike in nearly a decade.

Rents will increase 3.25% on one-year leases and 5% on two-year leases beginning in October of this year.

What You Need To Know

  • The Rent Guidelines Board approved a 3.25% increase in stabilized rents for one-year leases and a 5% increase in two-year leases

  • It's the largest increase in stabilized rents since the Bloomberg administration

  • There are about one million rent-stabilized apartments in the city

Tenants advocates rallied loudly inside and out of the voting venue at Cooper Union in Manhattan, turning their backs on the board as the vote commenced.

"No justice, no peace, stop the rent increase," protestors chanted inside the theater as an official spoke.

Mayor Eric Adams called the outcome "disappointing" for tenants, while pointing to small landlords as evidence of the need for some measure of increase.

"The determination made by the Rent Guidelines Board today will unfortunately be a burden to tenants at this difficult time — and that is disappointing." Adams said in a statement. "At the same time, small landlords are at risk of bankruptcy because of years of no increases at all, putting building owners of modest means at risk while threatening the quality of life for tenants who deserve to live in well-maintained, modern buildings."

"This system is broken, and we cannot pit landlords against tenants as winners and losers every year," Adams added.

Sheila Garcia, a member of the Rent Guidelines Board opposed to the hike, said residents won't see a benefit from higher rents.

"Rent increases do not translate to better conditions for tenants; it does not translate to better living for tenants," she said. "It does not translate to more stable housing for tenants. It just means landlords can do a little bit more, of whatever they want to do, including purchasing buildings."

Marty Goodman, a retired MTA station agent who lives in a rent-stabilized apartment in Washington Heights, showed up to the meeting to protest the increase.

"Rent stabilization is what’s keeping me alive on my pension," he said.

Landlords have said at public hearings they need to raise rents to maintain buildings and costs in gas and materials due to inflation.

After the vote, Bryan Liff, an owner of an eight-unit building, said the increase was far from enough, particularly after rent freezes and marginal increases under the de Blasio administration.

When asked what he’ll do with the extra rental income, he said, it’s going to repairs.