When rent boards debate between a rent freeze or a rent hike, the headlines often frame it as a battle between tenant advocates and landlords. On the surface, a rent freeze might seem like a win for affordability but dig a little deeper, and you’ll find that this policy can come with unintended consequences. In many cases, what appears to be a “freeze” for some renters ends up causing steeper hikes for others.
In a city like New York, where a significant portion of the housing stock is rent-regulated, this tension is especially pronounced.
The Hidden Costs of a Freeze
To understand the issue, let’s consider a real-world scenario outlined in amNY’s editorial:
A small, mixed-use apartment building in Park Slope contains the following:
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3 free-market units, each renting for about $4,150
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3 rent-stabilized units, each at $1,600
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2 rent-controlled units, each at $640
The operating expenses for this building property taxes, maintenance, insurance, utilities, and compliance costs continue to rise year after year. To remain financially viable, the owner needs an overall 3.5% increase in rental income. However, because rent-controlled and rent-stabilized units are subject to strict limits on annual increases (and often see no increase during freezes), the building’s owner is forced to raise free-market rents more sharply to make up the difference.
That results in free-market tenants absorbing a disproportionate share of the burden, pushing their rent from $4,150 up to $4,365 or more a 5% increase.
So while the headlines may tout tenant protections, the economic weight is simply shifting, not disappearing.
The “Death Spiral” of Deferred Maintenance
When regulated rents are kept artificially low year after year, owners often struggle to cover basic upkeep. The result?
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Deferred repairs and deteriorating building conditions
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Reduced incentive to invest in property improvements
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Increased risk of abandonment or disinvestment in older buildings
This “death spiral,” as some housing experts call it, affects both tenants and neighborhoods. The city ends up with housing that is technically affordable but functionally uninhabitable. According to the Citizens Budget Commission and NYU’s Furman Center, this growing strain on rent-stabilized housing could lead to a crisis in housing quality if left unaddressed.
The Bigger Picture: Balancing Protection and Sustainability
Housing policy isn’t just about rent levels it’s about balance. If tenant protections come at the cost of building viability, they risk becoming self-defeating.
As Rafael Cestero, CEO of the Community Preservation Corporation and former NYC Housing Commissioner, points out:
“If we continue to ignore the mounting challenges within the rent-stabilized housing sector, we risk watching many of our most affordable homes deteriorate beyond repair.”
So what’s the alternative?
A Smarter Path Forward
Rather than pitting tenants against landlords, we can rethink the rent debate with practical, targeted solutions that support both sides of the housing equation.
Here are three promising strategies:
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Expand Voucher Programs
Direct rental assistance like Section 8 or city-based voucher systems ensures help reaches those most in need, without undercutting building income or quality. -
Adjust Rents Modestly, With Guardrails
Small, inflation-aligned increases (1–3%) allow property owners to maintain buildings while protecting tenants from extreme rent spikes. Predictable rent increases also support long-term stability. -
Provide Tax Relief for Owners of Regulated Housing
Just as rent freezes protect tenants, policies like SCRIE (Senior Citizen Rent Increase Exemption) can shield vulnerable renters without harming landlords, who receive property tax abatements in return. Expanding programs like these could reduce the pressure to raise market rents disproportionately.
Final Takeaway
The choice between a rent freeze and a rent hike isn’t black and white. Rent freezes can help tenants in the short term but without accompanying measures, they can worsen long-term housing stability, lead to maintenance shortfalls, and cause market-rate tenants to bear a heavier burden.
If we want to protect tenants, preserve housing quality, and prevent a deeper affordability crisis, we need policies that support both renters and owners. The future of rent-stabilized housing depends on equity, sustainability, and shared responsibility.