Zohran Mamdani’s push to “freeze rents” in New York City has raised concerns about the future of the city’s rental market. While popular among some renters, this policy could lead to a collapse in the housing market, especially for smaller landlords, and result in fewer available apartments for tenants in need.
Read: NYC Rent Board Approves 3% Rent Hike, Rejects Mamdani’s Rent Freeze
Low Rent Hikes Already Impacting Landlords
Under the current Rent Guidelines Board (RGB) decisions, rent-stabilized units are facing dangerously low hikes—3% for one-year renewals and 4.5% for two-year ones. These increases fall short of covering landlords’ rising costs, as noted by RGB staff. After years of near-zero rent hikes during the de Blasio administration, and compounded by nonpayment during COVID-19, many small, rent-stabilized landlords are struggling financially.
Risk of Landlord Abandonment
Many landlords, especially smaller “mom-and-pop” owners who hold two-thirds of rent-stabilized units, are on the verge of abandoning their buildings. The pressure from low rent hikes, combined with increased costs and legal restrictions on renovations, is pushing these landlords to consider selling or ceasing operations.
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Deteriorating Housing Conditions
Unable to raise rents sufficiently, many landlords are forced to cut back on building maintenance. This results in the gradual deterioration of buildings and apartments. As these units grow shabbier, they become scarcer, further exacerbating the housing crisis in New York City.
Mamdani’s Rent Freeze Impact
If Mamdani wins and continues his campaign to freeze rents, the situation could worsen. Freezing rents may provide short-term relief for tenants but could lead to long-term consequences. The market for rent-stabilized apartments is shrinking, driving up the prices of market-rate units as demand increases for fewer available options.
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Economic Consequences of Rent Control
Economists broadly agree that rent control measures, like freezing rents, can be detrimental to housing markets. While Mamdani and his supporters argue for rent stabilization to protect tenants, the reality is that such policies often lead to reduced housing supply and poorer living conditions.
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Rent Control Beneficiaries and Inequities
The irony in Mamdani’s platform is that rent-stabilized apartments are often more accessible to individuals who can afford higher rents or have better access to housing markets. Those in need of affordable housing may find themselves squeezed out of the market as the rental pool shrinks.
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Legal Precedents and Challenges
A Supreme Court ruling last year affirmed that New York’s rent laws are constitutional. However, this ruling assumes the Rent Guidelines Board’s independence, which could be undermined if Mamdani’s promised rent freezes become a reality, potentially destabilizing the balance in the city’s housing market.
