- Rent-stabilized landlord expenses grew 5.3% in 2025, surpassing general inflation.
- Energy and insurance saw the largest annual cost increases among expenses.
- Sales of rent-stabilized buildings rose 33% citywide, with the Bronx leading growth.
- Owners and tenants remain divided over rent increases and expense pressures.
Costs Rise for Rent-Stabilized Landlords
Operating costs for New York City’s rent-stabilized landlords grew 5.3% over the past year, exceeding the 2.7% inflation measured for the broader US economy, according to The Real Deal. The Rent Guidelines Board found that energy and insurance posted the sharpest increases, with expenses for rent-stabilized properties rising 31% over five years.
Rent Growth Debate Heats Up
Landlords argue that rent-stabilized rents need to increase by 3.4% to 4.5% to keep net operating incomes stable. However, the majority of the Rent Guidelines Board favors a rent freeze, reflecting the stance of Mayor Zohran Mamdani, who appointed most board members. Tenant advocates remain unconvinced, emphasizing that landlord profits have climbed in recent years.
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Financial Stress Grows for Owners
Data from Community Preservation Corp. shows over 30% of affordable housing loans lack enough income to service debt. Rent collections have slipped to about 92% of billed amounts, down from over 95% pre-pandemic. At the same time, rising insurance costs continue to pressure operating margins, adding another layer of financial strain for already stressed owners.
Sales of Rent-Stabilized Properties Climb
The Rent Guidelines Board reported 730 sales of rent-stabilized buildings in 2025—a 33% increase from the prior year. The Bronx recorded the largest percentage jump in transactions, while the average price per unit for buildings predating 1974 fell 5.8% to $228,437. Much of the recent activity comes from long-time, small landlords rather than institutions.
