The NYU Furman Center has revealed troubling data regarding the financial sustainability of older, entirely rent-stabilized buildings in New York, particularly in the Bronx. The analysis indicates that since the enactment of the Housing Stability and Tenant Protection Act of 2019, many buildings are now grappling with significant revenue shortfalls, with annual financial deficits averaging $1,444 per unit in 2024. The findings highlight the need for intervention, as the current rent adjustments set by the Rent Guidelines Board do not sufficiently address the increasing economic strain on these properties.
The Furman Center's findings indicate that older rent-stabilized buildings, particularly in the Bronx, are facing escalating revenue shortfalls since the HSTPA passed.
Mark Willis concluded that the revenue shortfall in 100% rent-stabilized buildings is likely to grow exponentially as the years progress.
The NY Apartment Association noted that these comments marked the first acknowledgment by the Furman Center regarding the future risks facing rent-stabilized housing.
There is a clear indication that the RGB’s annual rent adjustments have historically failed to keep pace with inflation, worsening the financial viability of these buildings.
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