New York City’s Rent Guidelines Board (RGB) has approved a rent hike for nearly one million rent-stabilized apartments, a decision reached after a narrow 5-4 vote on Monday evening. Effective for leases issued or renewed on or after October 1, the increase mandates a 3% hike for one-year leases and 4.5% for two-year leases. This outcome has failed to fully satisfy either smaller landlords or tenant activists, reflecting the complex and contentious nature of the city’s housing crisis.

Mayor Eric Adams, who appointed all nine board members including two tenant and two landlord representatives, expressed his disappointment with the approved increases. He had previously urged the board to adopt the minimum increases considered: 1.75% for one-year leases and 3.75% for two-year leases. Adams stated that while the board exercised independent judgment, the approved hikes were higher than he had called for, emphasizing the need to balance affordability with maintaining housing quality in a tight market with a 1.4% vacancy rate.

The board’s decision followed a series of deliberations and public hearings since March. Initially, in early May, the board had voted to increase two-year leases by at least 4.75%, but in a rare reversal less than a month later, on May 27, this minimum was scaled back to 3.75%. The maximum possible hike considered by the board was 7.75%. Board Chair Doug Apple noted the re-vote on two-year leases was warranted due to testimony on the impact of potential increases on tenants whose incomes are not keeping pace with the rising cost of living.

The vote prompted significant public outcry, with community members interrupting the tense meeting with chants of “Freeze the rent!” and blowing whistles. Tenant advocates have vehemently pushed for a rent freeze amidst the worsening affordability crisis, a measure strongly championed by Queens Assembly Member Zohran Mamdani, who has made it a core campaign pledge for his mayoral bid. Mamdani criticized the mayor for allegedly placating real estate donors and warned that even modest rent hikes would displace New Yorkers.

Conversely, Mayor Adams strongly refuted the call for a rent freeze, labeling it