The Truth of Mayor Mamdani’s Rent Freeze and the Fall of NYC’s Aging Rent-Stabilized Stock
A call to Mayor Mamdani and City Hall to fix the tax burden on older buildings
When rents rise, the assumption is often that landlords are making more money. But higher revenue does not automatically mean a healthier property.
The money coming in must cover taxes, insurance, owner-paid utilities, repairs and maintenance. What remains must fund reserves and provide a return on investment.
For property owners, the question is simple. After collecting rent and paying the bills, is enough left to maintain the building properly? That matters to tenants just as much as owners.
What the numbers show
Our comparison found an average increase of 259.6% across studio, one-, two- and three-bedroom rent benchmarks between 1998 and 2026. It compares historical HUD rent benchmarks with current NYCHA new-rental payment standards. Actual rent growth varies by building.
Across NYC’s four property tax classes, the equal-weight average increase in total levies was 418.1% from fiscal 1998 to 2026. The individual increases were 440.7% for Class 1, 455.6% for Class 2, 479.8% for Class 3 and 296.3% for Class 4. These figures include new development and changes in the tax base. The 418.1% figure gives each class the same weight. Individual bills and the combined citywide levy are separate measures.
Regional electricity and gas prices roughly doubled between December 1998 and December 2024. Statewide homeowners premiums rose 166.4% between 2000 and 2022. Overall metro-area consumer prices rose 108.6% between September 1998 and September 2026.
These measures cover different periods and geographies. The statewide homeowners insurance series is a proxy for insurance cost pressure. To know whether costs outpaced rent at a specific NYC rental building, look at its actual expenses and collections.
When maintenance gets pushed back
When cash flow falls short, preventive maintenance may be postponed to cover immediate obligations. A small leak becomes water damage. An aging boiler receives another temporary repair. Exterior work gets delayed. Deferred maintenance can become a larger capital expense and potentially a violation.
That outcome can be prevented. Owners remain responsible for safe housing, and a building with enough operating income to plan and pay for repairs is better positioned to keep apartments habitable.
How NYC Rent-Stabilized Buildings Are Underwater
Illustrative annual figures, 1998 to 2026
Rent collected (+99.7%): $100,000 to $199,673.
Property taxes (+455.6%): $30,000 to $166,680.
Other operating costs (held flat): $55,000 in both years.
Net operating income: $15,000 to −$22,007.
Taxes rose $136,680. Rent rose $99,673. The tax increase erased the starting surplus and left a $22,007 annual operating shortfall. The example applies the citywide Class 2 levy increase to a hypothetical tax bill and holds other operating costs flat.
From 1998 to 2026, the Class 2 levy rose 455.6%, versus 108.6% for New York metro inflation.
The issue is the money left over
Look at the dollars left after expenses. Consider a hypothetical property collecting $100,000 annually with $40,000 in operating expenses. It produces $60,000 in net operating income before reserves.
If collections rise 10% to $110,000 while expenses rise 30% to $52,000, only $58,000 remains. Rent went up. Operating income went down. A vacancy, unpaid rent or major repair can narrow that margin further.
Owners only directly bear the utilities they pay. Tenant-paid electricity belongs in the tenant’s affordability calculation. The lease determines who pays each bill.
The long-term comparison
Rent benchmarks, property taxes, utilities, insurance and cost of living
Nominal changes, not adjusted for inflation. The measures cover different periods and geographies.
Building costs: Turner national index, 549 (1998) to 1,575 (Q3 2026 forecast), up 186.9%; not NYC-specific. Minimum wage: $5.15 federal floor for covered workers (1998) to NYC $17 (2026), up 230.1%; not average wages.
Sources: HUD 1998, NYCHA 2026, DOF 1998, DOF 2026, BLS energy, FRED electricity, FRED gas, CPI, historical insurance premiums, NAIC homeowners report.
The four NYC property tax classes
Change in each class’s total citywide levy, FY1998 to FY2026:
Class 1: Mostly one- to three-unit homes, some condos and residential vacant land (+440.7%).
Class 2: Other residential property, including most apartment buildings, co-ops and condos (+455.6%).
Class 3: Utility company equipment (+479.8%).
Class 4: Remaining property, including most commercial and industrial real estate (+296.3%).
Assumptions behind the building example
Rent assumes full collection and compounds standard one-year renewal percentages under RGB Orders 30–57, from October 1998 through September 2026 (+99.7%). Special adjustments and vacancy effects are excluded. The model applies the Class 2 levy increase to one hypothetical tax bill and holds other costs flat to isolate the effect. The chart’s 259.6% rent figure compares HUD and NYCHA benchmarks. Actual rent rolls and tax bills vary.
A tax policy that preserves affordable homes
Affordability needs a complete budget
Tenants need affordable housing. Buildings need dependable income to remain safe and functional. A serious housing discussion must address both.
Before deciding whether rents should rise or be frozen, examine actual collections, taxes, insurance, owner-paid utilities, maintenance and capital needs. Investors need the same discipline. An asking rent or voucher standard can differ from what a building collects.
The goal should be affordable homes supported by buildings that can afford to stay in good condition. Ignoring either side leaves the neighborhood carrying the consequences.
How rising city debt puts pressure on property taxes
NYC’s annual debt service is projected to rise from $9.33 billion in FY2027 to $12.49 billion in FY2030, up 33.9% after adjusting for prepayments. The same plan projects property tax revenue rising from $37.3 billion to $40.5 billion. Property tax is NYC’s largest revenue source and pays debt service on the City’s general obligation bonds.
Bigger debt payments put pressure on City Hall to raise revenue and make tax relief harder to fund. How much of that pressure lands on older rent-stabilized buildings is a policy choice.
Mayor Mamdani and City Hall, act now
Mayor Mamdani, bring rent-stabilized landlords to the same table. Stop holding news conferences that antagonize owners whose buildings are already underwater. Sit down with them and review what their buildings actually collect in rent and pay in taxes. City Hall helped create this tax burden. City Hall must fix it.
The common sense solution is simple. Older buildings need more upkeep. If New York City wants to preserve affordable homes, its tax policy should leave room to repair roofs, replace boilers and keep the plumbing working. To see what a building can afford, look at actual rent collections, taxes, owner-paid costs and the repairs it needs.
Mayor Mamdani, direct the Department of Finance to create a separate assessment category for pre-1974 buildings that are at least 90% rent-stabilized. Then send Albany a proposal for a dedicated property tax class for those buildings.
Property tax relief can give landlords more room to maintain their buildings and respond to repairs sooner. Fixing a leak before it becomes water damage can prevent a violation and a dispute. Resolving routine repairs directly with tenants, without adding a new layer of City bureaucracy, can rebuild trust between tenants and landlords. Keep HPD and DOB enforcement in place. Judge the policy by faster repairs and fewer repeat violations.
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