New York City employs a multifaceted approach to housing price regulation, prioritizing affordability and stability. Key policies include rent stabilization laws, inclusionary zoning mandates, and targeted subsidies for low

and middle-income residents. The city also enforces rent control in specific buildings and promotes mixed-income developments to prevent displacement. These measures aim to balance market dynamics with social equity goals.

The primary rationale for these policies stems from New York City’s extreme housing affordability crisis. Over 50% of residents spend more than 30% of income on rent, with a 2023 median rent of $3,860 for a one-bedroom apartment, exceeding income levels for most households. Rent stabilization, covering approximately 600,000 units, restricts rent hikes for tenants in older buildings, preventing speculative increases. Data from the New York City Department of Housing Preservation and Development (HPD) shows rent stabilized units accounted for 68% of tenant protections in 2022. Inclusionary zoning, requiring developers to set aside 20-30% of units as affordable, has created over 100,000 affordable units since 2014, though critics argue it often displaces lower-income residents due to high land costs. The 2021 Affordable Housing New York City Act targets 300,000 new or preserved affordable units by 2026, leveraging public-private partnerships and tax incentives. Preservation programs have protected 200,000 units from conversion to market-rate housing since 2014, yet 1.2 million rent-regulated units remain vulnerable to expiration. Challenges include rising construction costs (up 40% since 2019) and limited funding, but policies like the $10 billion Housing Preservation and Development Plan aim to address these gaps. Ultimately, the city’s approach seeks to mitigate gentrification while fostering economic integration through structured price controls and incentives.