Rent-stabilized renewal leases in New York City that start on or after October 1 now carry a 0% guideline increase. The Rent Guidelines Board's Order #58 freezes both one-year and two-year renewals for leases starting between October 1, 2026 and September 30, 2027, across roughly 1 million stabilized apartments. It is the first time the board has frozen two-year leases. It took effect while a landlord lawsuit is still pending, and on October 1 City Hall's messages with board members became part of the court record (The Real Deal; NY1).
The Real Deal called the rollout "a mess." For Manhattan buyers, what matters is which apartments and buildings the freeze touches, and where it changes the math on a purchase.
If you are new to the process, start with our guide to buying an apartment in NYC.
This article summarizes public rules and reporting. It is not legal advice. Your real estate attorney should review any purchase that involves tenants in place.
At a glance
- The board voted 7-1 on June 25, 2026 for 0% on one-year and 0% on two-year renewals. Earlier freezes in 2015, 2016 and 2020 covered one-year leases only.
- The freeze applies only to rent-stabilized units. Market-rate rentals, and most condo and co-op apartments, are outside it.
- Landlords represented by Randy Mastro sued in July, calling the process predetermined. Justice Brendan Lantry ordered City Hall to hand over its communications with the board, refused to stay the freeze, and expects to rule by year-end.
- Lawyers disagree on what happens to leases already signed at 0% if the landlords win.
- For buyers of townhouses and small buildings with stabilized units, the freeze lands on top of 2019 rules that ended vacancy decontrol and capped what improvements can add to rent.
What the Board Did
For a one-year or a two-year lease "commencing on or after October 1, 2026 and on or before September 30, 2027": 0%. The vote was 7-1, by a board on which six of nine members were appointed by Mayor Zohran Mamdani, who campaigned on a freeze. Christina Smyth, an owner member appointed under the previous administration, resigned hours before the vote (WSET; CityRealty).
The board has frozen rents before. It set 0% for one-year leases in 2015 and 2016, and again in 2020. Each time, two-year leases still got some increase (City Limits; CityRealty). This time both terms are frozen, which means a tenant who signs a two-year renewal this year may carry the same rent into late 2029.
Owners point to costs. The board's own 2026 Price Index of Operating Costs, released in April, measured a 5.3% rise in costs for stabilized buildings, with insurance up 10.5% and fuel up 11.0%. The board's separate income and expense study found net operating income still rising on average, with wide differences by borough.
The Lawsuit and Why It Matters
A group of owners of stabilized buildings in Brooklyn, Queens, Staten Island and the Bronx filed an Article 78 petition in State Supreme Court in July. Their lawyers, Randy Mastro of Dechert and Rosenberg & Estis, argue the board was "predisposed to delivering a freeze" and ignored its own data (Commercial Observer; 6sqft).
Justice Brendan T. Lantry has issued several rulings since early September. He ordered the city to turn over written communications between City Hall and board members from January 1 through the June vote. He refused the landlords' request to carry over 2025's increases (3% on one-year leases, 4.5% on two-year leases), saying the court lacked that authority, and declined to rule before October 1: "We are working as expeditiously as we can to resolve this case. I'm not going to operate with a shotgun to my head." He expects to decide before year-end (THE CITY, September 24, 2026).
Roughly 3,000 pages came out on October 1. The Real Deal described them as largely logistical. Mastro says they show coordination between the mayor's office and the board. Corporation Counsel Steven Banks says they show the board's independence.
The open question is what a landlord win would mean for leases already renewed. Mastro's own framing, per THE CITY: "If the zero-zero stays in place, the landlords are gonna be stuck with that." Other landlord attorneys quoted by The Real Deal expect any court-ordered increase to apply retroactively. Nobody knows yet, and appeals could stretch it into 2027.
Who the Freeze Covers, and Who It Doesn't
Rent stabilization depends on the building, its age and its tax history. Per the Rent Guidelines Board, it generally covers:
- Buildings of six or more units built between February 1, 1947 and December 31, 1973.
- Apartments in pre-1947 buildings of six or more units where the tenant moved in after June 30, 1971.
- Buildings of three or more units built or substantially renovated since 1974 with tax benefits such as 421-a or J-51, for as long as the benefit requires. Our guide to 421-a and J-51 abatements explains how those programs work.
Outside it: market-rate rentals and most condo and co-op apartments. Some market-rate apartments do fall under the state's 2024 Good Cause Eviction law, which limits unreasonable increases and nonrenewals, but that is a separate regime from the board's guidelines. When a building converts to a condo or co-op, a stabilized tenant in place keeps the protection. Once that tenant leaves, the unit can be sold or rented without stabilization (RGB). Rent control is a separate, much smaller system for long-term tenants in older buildings, run on its own formula.
What It Means If You Are Buying in Manhattan
- Buying a condo to rent out. A typical Manhattan condo unit rented at market is not affected. If the unit comes with a tenant, ask for the lease and confirm in writing whether it is registered as stabilized. A unit in a building that received 421-a can be.
- Buying into a co-op. Some older co-ops still have sponsor-owned apartments occupied by stabilized tenants from the conversion. Those rents are now frozen too. Ask how many such units remain, and read the financials with that income in mind. Our co-op vs condo guide covers what to request.
- Buying a townhouse with tenants. A pre-1974 house with fewer than six units is generally not stabilized unless it took tax benefits. Six or more units usually is. Before you sign, get the DHCR rent registration history, not the seller's summary. Our brownstone buying checklist covers the rest of the inspection.
- Underwriting a small building. Since 2019 there is no vacancy decontrol, and capital improvement increases are capped at 2% a year in the city. Since the 2024 budget change, improvement costs an owner can recover through rent are generally capped at $30,000 per apartment over 15 years, or $50,000 for some long-vacant units (HCR). Model a 0% guideline on each renewal that starts by September 30, 2027, future guidelines after that, and real cost growth. Brokers told The Real Deal in July that the vote pushed stabilized building values lower.
- Watching the court. A ruling is expected before year-end. A contract signed now should allocate the risk either way, and your attorney should draft that language.
Looking at a Manhattan property with tenants in place? Our brokers work with experienced landlord and tenant counsel. Message us on WhatsApp for a private conversation.
FAQ
Is there a rent freeze in NYC in 2026?
Yes. Rent Guidelines Board Order #58 sets 0% for one-year and two-year renewals on rent-stabilized apartments for leases starting October 1, 2026 through September 30, 2027. It does not apply to market-rate apartments.
Does the NYC rent freeze apply to condos?
Generally no. Condo and co-op apartments rented at market are outside rent stabilization. The exception is a stabilized tenant who was living in the apartment when the building converted, who keeps that protection, and a unit in a building whose tax benefit requires stabilization.
How many apartments does the rent freeze cover?
About 1 million rent-stabilized apartments citywide, according to the Rent Guidelines Board.
Can the rent freeze be overturned?
Landlords have asked a state court to annul it. Justice Brendan Lantry ordered City Hall's communications with the board turned over, refused to stay the freeze, and expects to rule before the end of 2026. If the order were annulled, the court's judgment would set what happens next, and lawyers disagree on what it would mean for leases already signed.
Is the 2026 freeze the first in NYC history?
No. The board froze one-year leases in 2015, 2016 and 2020. 2026 is the first time it froze two-year leases as well.
Ask for the rent registration history before you put a price on a building.
Related insights
Sources: NYC Rent Guidelines Board, Apartment and Loft Order #58 and rent stabilization and rent control FAQs; RGB 2026 Price Index of Operating Costs; The Real Deal (July 10, July 22 and October 1, 2026); NY1 (October 1, 2026); THE CITY (September 24, 2026); Commercial Observer (July 22, 2026); 6sqft; WSET; CityRealty (July 10, 2026); City Limits; Spectrum News (September 17, 2026); NY Daily News (October 1, 2026); NYS Homes and Community Renewal on the 2019 HSTPA and 2024 IAI changes; N.Y. Real Property Law section 216 (Good Cause Eviction).
