F
or a decade, rent-stabilized rents in New York City have been decreasing when adjusted for inflation. This fact is often overlooked in public discussions. The last time the Rent Guidelines Board increased rents more than inflation was at the beginning of Mayor de Blasio's administration.

    Rent-stabilized buildings are facing significant financial difficulties due to rising operating expenses and declining rent collections, according to Rafael Cestero, CEO of the Community Preservation Corporation. A crucial aspect often missing from conversations about freezing rents is that, adjusted for inflation, rent-stabilized rents have been decreasing for 10 years.

    The last time an RGB increase outpaced inflation was before Mayor de Blasio filled the board with his appointees, who froze rents three times. The trend has continued under Mayor Eric Adams. A chart by Rent Guidelines Board member Alex Armlovich shows that since October 2000, rent increases have consistently been below inflation rates.

    Rent drops not only benefit tenants in traditional rent-stabilized buildings but also those in properties receiving tax breaks like 421a and J-51. Many of these buildings are struggling financially due to mortgages not being underwritten for rent decreases. Rafael Cestero highlighted the financial struggles of his organization's rent-stabilized building portfolio, citing a 21% increase in operating expenses since 2020 and plummeting rent collections during the pandemic.

    Cestero emphasized that the issue is not profit-seeking by landlords but rather math. He noted that rent-stabilized housing stock is facing deepening financial and physical distress, with many buildings barely above water or under it. The data collected by his organization paints a troubling picture, but this crucial information is often ignored in discussions about rent freezes.