New York, NY — With housing costs already among the highest in the nation, New York tenants are paying close attention to rent increase laws in 2025. Whether you live in a rent-stabilized unit or a market-rate apartment, recent updates from the Rent Guidelines Board (RGB) and the state’s new Good Cause Eviction law will determine how much your rent can rise when your lease renews.
Rent Regulation in New York: Two Main Categories
New York rental units fall into two primary categories:
- Rent-stabilized apartments
Typically buildings built before 1974 or those receiving tax incentives. Rent increases here are capped by the RGB each year. - Market-rate (unregulated) apartments
Landlords have more flexibility but must now follow Good Cause Eviction protections. That means they cannot impose extreme increases or deny renewals without a valid reason.
Knowing whether your unit is regulated or market-rate is the first step to protecting your rights.
2024–2025 Rent Guidelines in Effect
For leases renewed between October 1, 2024 and September 30, 2025, the RGB approved the following increases for rent-stabilized apartments:
- One-year lease renewal: Up to 2.75%
- Two-year lease renewal: Up to 5.25%
Any lease longer than a year but shorter than two years is treated as a two-year lease.
New 2025–2026 Rent Guidelines
The RGB has already set limits for renewals beginning October 1, 2025 through September 30, 2026:
- One-year lease renewal: Up to 3%
- Two-year lease renewal: Up to 4.5%
This means tenants with leases renewing after October 2025 should expect the new, slightly higher caps.
Major Change: Good Cause Eviction Law
Passed in 2024, the Good Cause Eviction law is now fully in effect in 2025. It closes loopholes that previously allowed landlords of market-rate units to impose huge hikes or deny renewals without explanation.
Now, landlords must show a valid reason (“good cause”) for:
- Raising rent above reasonable levels.
- Refusing to renew a tenant’s lease.
For market-rate tenants, this is one of the most impactful reforms in decades, giving new tools to fight unfair practices in housing court.
Other Key Rules Tenants Should Know
- Notice requirements: If a landlord plans to increase rent by more than 5%, written notice must be given. The notice period depends on tenancy length (30, 60, or 90 days).
- Preferential rent: If you currently pay a discounted rent below the legal regulated amount, your renewal must be based on the discounted figure.
- No vacancy or longevity bonuses: Landlords cannot impose large hikes simply because a unit turns over or a tenant has stayed long-term.
- Overcharge protections: Tenants suspecting overpayment can file a complaint with the New York State Homes and Community Renewal (DHCR).
What Tenants Should Do Before Renewing
To avoid surprises, tenants should take these steps before signing a new lease:
- Check your renewal date. If it’s before October 1, 2025, the 2.75%/5.25% caps apply; if after, the 3%/4.5% limits apply.
- Confirm your unit’s status. Use DHCR records if you are unsure whether your apartment is stabilized.
- Demand written notice. For hikes above 5%, ensure your landlord gives proper written notice.
- Understand preferential rent. Verify that your renewal is calculated on the rent you currently pay, not the maximum legal amount.
- Challenge unfair hikes. If something seems unlawful, contact DHCR or a tenants’ rights group.
- Negotiate when possible. Especially in unregulated units, landlords may agree to smaller increases to avoid turnover.
Why These Changes Matter
Tenant advocates argue the new protections strike a balance between affordability and landlord costs. With rents across the city at record highs, even modest increases can strain families. The Good Cause Eviction law is expected to reduce displacement, especially among older tenants and low-income households.
Landlords, however, warn that the restrictions could discourage investment in rental housing, potentially limiting supply in the long term.
Conclusion
In 2025, New York rent increase laws give tenants more stability than before. Rent-stabilized tenants face capped increases of 2.75%/5.25% (2024–25) and 3%/4.5% (2025–26). Market-rate tenants now benefit from Good Cause Eviction protections, preventing excessive hikes or non-renewals without valid justification.
Before renewing, tenants should confirm their apartment’s status, check which guidelines apply, and demand everything in writing. Staying informed and proactive is the best way to keep your housing costs legal and fair.
