An Ongoing Crisis for Rent-Stabilized Housing
New York City’s affordable housing system is at a critical inflection point. With over one million rent-stabilized apartments impacted by the Rent Guidelines Board’s (RGB) preliminary vote this month, the decision to cap rent increases between 1.75% and 4.25% for one-year leases and up to 7.75% for two-year leases has reignited a long-simmering debate: How do we preserve affordability without bankrupting the buildings that make it possible?
As a property owner and operator deeply engaged with this housing stock, I’ve seen firsthand the mounting tension between rising costs and regulatory constraints. This isn’t just a question of margins—it’s a question of long-term sustainability.
Operating Costs Outpacing Policy
The RGB’s own data shows that operating costs for rent-stabilized buildings rose 6.3% between 2024 and 2025, yet their proposed rent increase range still lags below inflation. And that’s assuming landlords are granted the upper end of the range—a scenario that’s increasingly rare amid political pressure for rent freezes and caps.
Many critics of the current framework argue that the board’s data analysis is flawed, as it includes buildings with free-market units charging over $10,000/month, distorting the financial outlook for smaller landlords who operate on far tighter budgets. This point, raised by the New York Apartment Association (NYAA), speaks to a deeper concern: the disconnect between policy and ground-level reality.
Rent-Stabilized Housing: The Economic Toll of Inaction
Let’s be clear: NYC’s rent-stabilized housing is in distress. A 2024 report from KBRA found that 25% of pre-1974 buildings—which comprise the majority of rent-stabilized inventory—are considered financially distressed. Foreclosures are climbing. Values have plummeted, with some properties trading for less than half their previous sale prices. Lenders are tightening terms, often requiring personal guarantees and steering clear of what was once a stable asset class.
This is not a sustainable model. Landlords are being asked to maintain essential housing with fewer and fewer resources, while tenants are understandably protected from steep increases during a historic affordability crisis. But the burden of keeping these properties afloat cannot fall entirely on the private sector—especially not without tools, incentives, or relief.
Rent-Stabilized HousingBalancing Tenant Protection with Property Viability
Mayor Eric Adams has attempted to straddle both sides of this issue, supporting moderate rent increases while warning that a 7.75% hike is too steep for tenants to bear. Meanwhile, some elected officials are calling for a rent freeze, despite the data showing that operating costs are rising sharply.
The truth lies somewhere in the middle. New Yorkers do need stable, affordable housing—but we must also confront the economic fragility of the very buildings that supply it. These structures, many over 50 years old, require ongoing investment in heating systems, electrical upgrades, energy compliance, façade work, and more.
What’s Needed: Real Solutions, Not Political Placeholders
The RGB’s vote—while important—is just one piece of the puzzle. If the city truly wants to preserve its rent-stabilized stock, it must:
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Reform the 2019 rent laws to allow for targeted capital improvements
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Create financial incentives or subsidies for landlords making sustainability upgrades
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Improve access to low-interest loans for distressed properties
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Provide a clearer, data-driven methodology for future RGB adjustments
We need partnerships, not adversaries. Government, private owners, tenants, and lenders must come to the table with a shared goal: to protect the city’s housing infrastructure while ensuring it remains livable, safe, and financially viable.
Final Thoughts: A System at Risk Without Structural Reform
At Duke Properties, we understand the delicate balance required to operate in this space. We’ve always believed that affordable housing must be maintained with integrity, transparency, and financial realism. But when rising costs meet capped income, even the best-intentioned owners are forced to make difficult decisions.
The RGB’s current proposal may offer a modest step—but it’s not a solution. Without comprehensive reforms and a new approach to aging rent-stabilized stock, we risk watching this housing model collapse under its own weight.
New York deserves better. Let’s make sure we’re building a housing future that’s fair, functional, and forward-looking—for everyone.
— Albert Dweck
Founder & CEO, Duke Properties