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NYC affordable housing owners warn of rising operating cost squeeze
A survey of the regulated sector found 62% of respondents say operating costs have reached unsustainable levels, with insurance the top cost driver at 95%.
A new survey of New York City’s regulated affordable housing participants found a deepening financial squeeze, with operating costs rising faster than rents and tenant incomes, HousingWire reports. The NYC Housing Partnership said 62% of respondents said operating costs have risen to unsustainable levels, and none reported improved financial conditions.
Respondents cited insurance as the leading pressure point, with 95% naming it as a top cost driver, followed by utilities, maintenance and repairs, and labor. The survey described weak economic occupancy alongside high physical occupancy, tied to strain on resident incomes across large portfolios.
The findings align with ongoing disputes involving rent regulation, including landlords suing the city over a rent freeze the Rent Guidelines Board approved on June 25. HousingWire reports the city faces an August 14 deadline to respond, and the survey period ran June 18-26.
NYC Housing Partnership President and CEO Molly Wasow Park said the industry view is that taking no action is not an option, describing the situation as a cost-rents-income imbalance. An attorney for co-counsel on the lawsuit, Deborah Riegel of Rosenberg & Estis, said the sector is still in an inflationary cycle, and that incomes that do not cover expenses create problems.