New York City hasn't been known for cheap real estate in quite some time. Buying a place is ridiculously expensive and rental prices are looking to try and match those that pay mortgages. Economists have told those who own real estate that renting is becoming more fiscally sound, but if the Rent Guidelines Board has its way, they'll be changing their financial planning tune.
From The Gothamist:
This year, landlords will be asking for 10% hikes for 1-year leases and 15% increases for 2-year leases. Last year, rents hikes were approved for 3% on 1-year leases and 5.75% on 2-year leases (in 2006, the hikes were 4.25% and 7.25%). Landlords point to rising fuel and other costs, but tenants say landlords are still making a lot of money and plan to fight the hike.
While many New Yorkers don't have rent stabilized apartments, the increases reflect real market concerns. Congressman Anthony Weiner--who is eying a run for Mayor next year--says almost one in three New Yorkers pays at least 50% of the income to landlords. Weiner said, "You should spend no more than a third of your income on rent. That is [now] seen more and more not like a rule of thumb, but a pipe dream." And last year, another possible 2009 mayoral candidate, Comptroller William Thompson, sent a letter imploring the Rent Guidelines Board not to raise rents.
Politicians are good at kicking and screaming for their constituents but recently have not done much in terms of actual results (remember the MTA fare hike a few months ago?). I do not want anyone to implore the RGB to do anything, I want it done to them. Rental prices are rising astronomically and it needs to stop. The glut and greed of landlords is ridiculous and we as a city let them get away with it. What we need to do is start calling the RGB, packing their hearings and demanding fair terms. A ten percent rise is hardly fair, it should be criminal.
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