RGB Reports Changes to NYC's Rent-Stabilized Housing Stock
The Rent Guidelines Board recently issued a report highlighting additions and subtractions of dwelling units to and from the rent stabilization system in 2017. These statistics are gathered from various city and state agencies. This report is an update of previous studies done annually since 2003, when an analysis was done of the changes in New York City’s rent-stabilized housing stock from 1994 to 2002.
The study finds a net estimated gain of 4,387 rent-stabilized units in 2017. Most of the additions to the rent-stabilized stock in 2017 were due to the 421-a tax incentive program, accounting for 85 percent of the additions. Other events that lead to the addition of stabilized units include the J-51 property tax exemption and abatement program, Mitchell-Lama buyouts, lofts converted to rent-stabilized units, rent-controlled apartments converting to rent stabilization, and other additions such as different tax incentive programs and subdividing large units into two or more smaller units.
The report also found that the median rent of initially registered rent-stabilized apartments in 2017 was $2,685, a 2 percent decline from the prior year. Since 1994, the report states that NYC’s rent-stabilized housing stock has seen an approximate net loss of 147,512 units. Events that lead to the removal of stabilized units include the following:
- High-rent/high-income deregulation;
- High-rent vacancy deregulation;
- Cooperative/condominium conversions;
- Expiration of 421-a benefits;
- Expiration of J-51 benefits;
- Substantial rehabilitation;
- Conversion to commercial or professional status; and
- Other losses to the housing stock such as demolitions, condemnations, and mergers.