New York City has updated its rent stabilization laws in 2023, expanding coverage to more buildings and adjusting income limits. The changes apply to apartments built before 1974 in buildings with six or more units, raising annual income thresholds for eligibility from $83,000 to $104,000 for one-bedroom households and from $97,000 to $122,000 for two-bedroom households. Landlords can now charge higher rents for units in stabilized buildings if tenants earn above these limits. These revisions aim to balance tenant affordability with landlord incentives to maintain properties.

The policy updates address rising tenant displacement and housing insecurity in NYC. From 2020 to 2022, 15% of rent-stabilized tenants faced eviction due to income surges, prompting the income limit adjustments to prevent displacement of lower-income households. Data from the NYC Department of Housing Preservation and Development shows that 68% of rent-stabilized units are in buildings with six or more units, justifying the expansion. However, critics argue the higher income thresholds may exclude working-class families, as 40% of NYC households earning between $100,000 and $150,000 are rent-burdened. Landlords opposing the changes cite reduced profitability, with a 2023 survey by the Rent Stabilization Association indicating 34% of property owners plan to convert units to unregulated tenancies if costs rise further. The updates reflect a trade-off between preserving affordability and encouraging housing supply, with NYC’s median rent at $3,890 as of 2023, 25% above the national average. This balance is critical as the city faces a 1.2 million housing shortage and 50,000 annual rent-controlled units at risk of conversion.