Navigating New York’s rental landscape in 2025 requires understanding the state’s complex rent increase laws, which vary significantly depending on whether your apartment is rent-stabilized, rent-controlled, or unregulated. Here’s a comprehensive overview of what tenants should expect this year.
Rent-Stabilized Apartments
Most New York City tenants live in rent-stabilized apartments, especially in buildings with six or more units built before 1974. For leases beginning or renewed between October 1, 2024, and September 30, 2025, the New York City Rent Guidelines Board has set the following maximum allowable rent increases:
- 2.75% for a one-year lease renewal
- 5.25% for a two-year lease renewal
These limits apply only to rent-stabilized units and are strictly enforced. Landlords cannot increase rent beyond these percentages unless allowed by specific exceptions, such as approved Major Capital Improvements (MCIs) or Individual Apartment Improvements (IAIs).
Rent-Controlled Apartments
Rent-controlled apartments are rare and generally occupied by long-term tenants in buildings constructed before 1947. For these units, rent increases are governed by the Division of Housing and Community Renewal (DHCR) and are typically based on the lower of:
- The average of the last five annual Rent Guidelines Board increases for one-year renewals, or
- 7.5% annually, until the apartment’s rent reaches the Maximum Base Rent (MBR).
Exceptions: MCIs and IAIs
Landlords may apply for additional rent increases if they undertake significant improvements:
- Major Capital Improvements (MCIs): These are building-wide upgrades (e.g., new roofs, boilers). In NYC, the rent increase cap for MCIs is 2% per year, and these increases are no longer permanent—they expire after 30 years.
- Individual Apartment Improvements (IAIs): For improvements made to individual apartments, landlords can increase rent, but only up to a capped amount over a 15-year period. As of 2025, the maximum IAI rent increase is $89.29 per month for buildings with 35 or fewer units, and $83.33 for larger buildings. IAIs are now temporary and removed from the rent after 30 years.
Free-Market (Unregulated) Apartments
If your apartment is not rent-stabilized or rent-controlled, it is considered “free market.” Traditionally, landlords could raise rent without limit at lease renewal. However, the recently enacted Good Cause Eviction Law now provides some protections:
- A rent increase is presumed “unreasonable”—and thus grounds for a tenant to challenge an eviction—if it exceeds either 5% plus the local Consumer Price Index (CPI) or 10%, whichever is lower. For example, if the CPI is 2.2%, the maximum reasonable increase would be 7.2%.
- Landlords must provide written notice for increases of 5% or more:
- 30 days for tenants in residence less than one year
- 60 days for tenants of one to two years
- 90 days for tenants of more than two years.
Preferential Rent and Other Protections
If you pay a “preferential rent” (a rent lower than the legal regulated rent), your landlord cannot raise your rent to the legal maximum upon renewal; increases must follow Rent Guidelines Board rates unless you vacate.
Senior and Disabled Tenant Protections
Senior citizens and disabled tenants may qualify for exemptions from rent increases under specific city and state programs, helping to keep their rent affordable.
Summary Table: 2025 NYC Rent Increase Limits
| Apartment Type | 1-Year Lease | 2-Year Lease | Special Provisions |
|---|---|---|---|
| Rent-Stabilized | 2.75% | 5.25% | Set by Rent Guidelines Board |
| Rent-Controlled | Avg. of last 5 annual increases or 7.5% (whichever is less) | N/A | Based on MBR protocol |
| Free-Market (Unregulated) | No set cap, but >5% + CPI or 10% may be challenged | N/A | Good Cause Eviction Law applies |
Key Takeaways for Tenants
- Know your apartment’s status: Rent-stabilized and rent-controlled units have strict limits; free-market units now have some protections.
- Watch for exceptions: MCIs and IAIs can justify additional increases but are strictly regulated.
- Notice requirements: Significant rent increases require advance written notice.
- Challenge unreasonable increases: Under the Good Cause Eviction Law, excessive increases in free-market apartments can be contested.
Staying informed about your rights and the latest legal changes is essential for all New York renters in 2025.
Sources:
- https://rentguidelinesboard.cityofnewyork.us/2024-25-apartment-loft-order-56/
- https://thenewyorkcitybroker.com/nyc-rent-increase-limits-in-2025/
- https://en.wikipedia.org/wiki/Rent_regulation_in_New_York
- https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf
- https://www.doorloop.com/laws/new-york-rent-control-laws
