New York City’s rent-stabilized apartments are at the center of a growing debate. Landlords say they are not making enough to maintain their buildings, while renters argue that they cannot afford higher rent. The Rent Guidelines Board, which sets rent adjustments for about one million rent-stabilized units, is expected to vote soon on another increase. However, the city’s own data shows that landlords’ net operating income is rising. The clash between landlord finances and tenant hardship is shaping the political and policy conversation around rent control in the city.

Landlords Claim Crisis Conditions

Owners of rent-stabilized properties say their financial situation is worsening, comparing it to the 1970s when many buildings were abandoned due to falling values. They argue that despite previous rent increases, current income is not enough to cover rising maintenance and operational costs. Some landlords warn of potential building deterioration if conditions continue.

Rent Increases Add Up

Since 2014, rent-stabilized landlords have been allowed to raise rents nearly 17 percent. The Rent Guidelines Board is now considering another hike. These increases affect roughly two million tenants living in rent-stabilized units. The board, appointed by the mayor, is required by law to consider the financial health of the real estate industry when making decisions.

Net Operating Income Is Rising

According to a March 2025 report from the Rent Guidelines Board, landlords’ net operating income (NOI) increased by 12.1 percent from 2022 to 2023. NOI measures income after expenses like insurance, fuel, labor, and maintenance, but excludes taxes and mortgage debt. Lenders and city officials commonly use it to assess a building’s financial strength.

Not All Buildings Are Equal

While the citywide average NOI rose 12.1 percent, buildings with more rent-stabilized units saw lower increases. Properties that were fully rent-stabilized only saw a 4.6 percent rise. Buildings that were at least 80 percent rent-stabilized saw a 5.1 percent increase, and those that were 50 percent or more rent-stabilized had a 7.3 percent increase. In contrast, buildings with more market-rate units helped push up the overall average.

Low-Income Areas Show Signs of Distress

Some neighborhoods are seeing NOI declines. In the Bronx’s Soundview and Parkchester areas, NOI dropped more than 10 percent. In Jamaica, Queens, it fell by over 15 percent. Older, rent-stabilized buildings in East New York saw a 2.5 percent drop. These areas have older housing stock and lower average rents, often below $1,500 per month, compared to over $2,200 in newer buildings.

Debt Is the Real Struggle for Many Landlords

The nonprofit Community Preservation Corporation, which funds landlords of older rent-stabilized buildings, reported that 28 percent of its loans were not covered by the NOI in 2023. That figure was typically closer to 10 percent in earlier years. Their CEO warned that without change, many buildings risk falling into disrepair or being abandoned, especially those owned by smaller landlords.

Tenants Push Back Against Rent Hikes

Tenant groups argue that rent increases are unaffordable and unfair. Cea Weaver from the New York State Tenant Bloc said tenants should not be responsible for bailing out landlords who made poor financial choices. With high inflation and stagnant wages, many renters already struggle to pay existing rents, making further hikes even harder to absorb. Progressive candidates like Zohran Mamdani and Brad Lander support a rent freeze. In contrast, former Governor Andrew Cuomo and businessman Whitney Tilson have not committed to one. Landlord groups are financially backing candidates who support rent increases, adding to the political divide.