The news is now official — the Rent Guidelines Board has delivered on Mayor Zohran Mamdani's major campaign promise to enact a rent freeze — sending a blow to landlords under pressure from rising costs.
On Thursday evening, the housing authority voted in favor of 0% adjustments on both eligible one-year and two-year leases. That means about one million tenants living in stabilized apartments with renewals up between October 1, 2026 and September 30, 2027, will pay the same rate as before.
The move was expected after Mamdani appointed six people in February, representing well above the majority needed on the total nine-member board. Although a preliminary vote in May that allowed for up to four percent increases on stabilized units did leave some pause as to whether the rent freeze would be put into effect in Mamdani's first year as Mayor — his appointees have delivered.
In a statement following the action, Mamdani called it "a historic victory for New York City tenants."
Meanwhile, Realtor.com Senior Economist Jake Krimmel said that while the move provides relief for tenants under financial stress — it pressures some landlords, who face higher insurance premiums, property taxes and fuel costs. This could lead to fewer investments in buildings for upgrades.
"About 41% of the city's rental stock is rent-stabilized, and many of those buildings – especially fully stabilized ones concentrated in the outer boroughs – are already running on thin margins against rising insurance, energy, and property tax costs," he noted in a statement.
"Frozen revenues against rising costs is a math problem. Should buildings go underwater operationally, the first casualties are maintenance, capital improvements, and vacant units that get held off market rather than re-rented at a loss."
Already, New York City is dealing with a housing crisis due to the lack of supply. Potential units coming off the market due to operational failures could worsen the problem, according to Krimmel.
The next layer to address is the expense issue and, of course, adding as much supply as possible to the market. Mamdani said that he will continue working to lower costs, including insurance and other operating costs.
In April, Mamdani revealed a plan that could lower insurance costs for rent-stabilized and affordable housing operators by up to 30 percent under a new program, which deploys the city's balance sheet and provides access to cheaper capital.
Krimmel warns that if expenses aren't addressed enough and rent freezes become the new norm over the next several years — cost-strapped landlords will only get further squeezed, risking keeping buildings viable.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.