As of 2025, New York tenants benefit from some of the strongest rent increase protections in the country, thanks to a combination of rent regulation and new statewide laws. Here’s a breakdown of the current rules, what they mean for tenants, and how to respond if you face a rent hike.
1. Rent-Stabilized Apartments
If you live in a rent-stabilized apartment (most buildings with six or more units built before 1974):
- Maximum Rent Increase for 2025:
- One-year lease: 2.75%
- Two-year lease: 5.25%
- These limits apply to leases commencing between October 1, 2024, and September 30, 2025.
- Rent increases are set annually by the NYC Rent Guidelines Board and are strictly enforced.
- Additional increases may apply for approved apartment or building improvements, but these are capped and regulated.
2. Market-Rate (Unregulated) Apartments: Good Cause Eviction Law
For tenants in unregulated or market-rate apartments, the new Good Cause Eviction Law (effective April 2024) now caps most rent increases:
- Annual Rent Increase Limit: 5% plus the local rate of inflation, up to a maximum of 10%.
- For example, if the local inflation rate is 3.8%, the maximum legal increase would be 8.8% for that year.
- Landlord Requirements:
- Landlords cannot evict tenants for nonpayment if the rent increase exceeds this cap, unless they can justify the increase in court as reasonable.
- The law applies to most market-rate apartments in NYC and other municipalities that have opted in.
3. Rent-Controlled Apartments
- Rent increases are determined by the Division of Housing and Community Renewal (DHCR) and are generally limited to the lower of the average of the five most recent Rent Guidelines Board increases or 7.5%.
- Additional increases for apartment improvements are capped and must follow strict procedures.
4. Notice Requirements for Rent Increases
- For all apartments: Written notice is required for any rent increase of 5% or more.
- Tenancy less than 1 year: 30 days’ notice
- Tenancy 1–2 years: 60 days’ notice
- Tenancy 2 years or more: 90 days’ notice
- Landlords must provide a clear, written explanation of any rent increase, including the calculation and legal justification.
5. Protections and Tenant Actions
- Challenging Illegal Increases: If your landlord proposes a rent increase above the legal limit, remind them of your rights under the Good Cause Eviction Law or rent stabilization rules. If the landlord persists, you can file a complaint with the NY State Division of Homes and Community Renewal or use these laws as a defense in Housing Court.
- Transparency: Landlords must provide detailed breakdowns for any increase, especially those based on apartment improvements.
Summary Table: 2025 Rent Increase Caps in New York
| Apartment Type | Max. Increase (1-Year Lease) | Max. Increase (2-Year Lease) | Special Notes |
|---|---|---|---|
| Rent-Stabilized | 2.75% | 5.25% | Set by Rent Guidelines Board |
| Market-Rate (Good Cause) | 5% + inflation (max 10%) | 5% + inflation (max 10%) | Applies in NYC and participating municipalities |
| Rent-Controlled | Avg. of recent 5 RGB increases or 7.5% (whichever is less) | N/A | Determined by DHCR |
Key Takeaways for Tenants
- Most NYC tenants now have strong protections against excessive rent hikes.
- Know your apartment’s status (rent-stabilized, market-rate, or rent-controlled) to understand your rights.
- Always demand written notice and justification for any rent increase.
- If you receive a rent increase above the legal limit, you have the right to challenge it and cannot be evicted solely for nonpayment of an unreasonable increase.
Staying informed about these laws can help you protect your home and budget in 2025.
Sources:
- https://www.nytimes.com/2025/04/12/realestate/nyc-good-cause-eviction-law.html
- https://rentguidelinesboard.cityofnewyork.us/2024-25-apartment-loft-order-56/
- https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf
- https://thenewyorkcitybroker.com/nyc-rent-increase-limits-in-2025/
- https://www.fingerlakes1.com/2025/04/10/new-rent-laws-2025-what-tenants-need-to-know/