New York City Housing Market at a Crossroads

The New York City housing landscape finds itself at a pivotal moment as affordability challenges intensify, eviction pressures rise and city fiscal policy debates threaten to reshape both landlord and tenant experiences in 2026.

A new analysis released this week highlights a troubling trend: even units classified as “affordable” in New York City are increasingly unaffordable for many residents. According to data compiled by the New York Housing Conference, landlords of subsidized housing filed more than 43,000 eviction lawsuits in 2024, accounting for over a third of the city’s roughly 120,000 eviction filings last year. The majority of the more than 38,000 cases were for nonpayment of rent, underscoring that even regulated rents are out of reach when household budgets are squeezed by broader cost-of-living pressures.

The data also highlight that rent collection rates in subsidized buildings have dipped to around 90%, with some buildings below 80%, making it difficult for housing providers to cover operating costs. While only a fraction of eviction filings result in executed evictions, the sheer volume of cases reflects underlying stress in the housing system. For landlords and owners, these trends translate into increased legal costs, tenuous rent rolls and pressure on operations that already function on razor-thin margins.

For real estate professionals, understanding the human and economic drivers behind eviction filings is critical. Elevated eviction filings in areas like the Bronx, which accounted for nearly half of the city’s affordable housing cases, signal concentrated affordability stress in communities that also often intersect with key parts of the rental and resale market.

Compounding this affordability crisis is a major fiscal debate now unfolding at City Hall. Mayor Zohran Mamdani’s preliminary Fiscal Year 2027 budget released in mid-February proposes two paths to close a $5.4-billion budget gap. The mayor’s preferred option is to raise taxes on the city’s wealthiest residents and corporations, a proposal that has stalled due to political resistance at the state level. If those measures fail, Mayor Mamdani has signaled that he may pursue a 9.5% increase in the city’s property tax rate a move strongly opposed by many lawmakers and stakeholders.

For real estate professionals, the implications of a significant property tax increase are far-reaching. Property taxes are New York City’s largest source of revenue and even modest increases can significantly affect ownership costs for individual homebuyers, multifamily landlords and commercial property owners alike. An across-the-board rate increase could also indirectly influence rents, particularly in non-regulated buildings where market dynamics absorb cost shifts more directly.

Critics of the mayor’s proposal argue that a broad property tax hike could place disproportionate burdens on middle-class homeowners and small landlords, potentially destabilizing parts of the housing market that are already dealing with rising operating costs such as insurance and maintenance.

At the same time, tenants are gaining new legal protections statewide that will also shape how landlords and brokers approach their business. In New York State, Good Cause eviction protections now limit “no-fault” evictions and govern allowable rent increases for eligible tenants, those living in buildings built before 2009 and paying under certain rent thresholds. These safeguards, designed to reduce displacement and give tenants more security, add another layer of compliance requirements that housing professionals must understand.

Meanwhile, city efforts to accelerate housing production through streamlined public review processes, such as the Expedited Land Use Review Procedure (ELURP), aim to ease the bottlenecks that plague new affordable housing construction. With New York City’s vacancy rate among the lowest in the nation, these reforms are crucial to creating housing supply that can actually take pressure off rents.

For brokers, investors and property managers working in the New York City market today, navigating these overlapping forces requires both sharp technical knowledge and strategic foresight, such as:

Understand evolving tenant protections and eviction trends: Even affordable units are not immune to financial strain, and stays on evictions seldom reflect market stability.
Monitor fiscal policy developments: Property tax changes, budget negotiations, and shifts in where revenue burdens fall will have downstream effects on property valuations and operating expenses.
Stay attuned to legislative shifts: State and city housing policies from rent stabilization to expedited development procedures will influence market behavior and regulatory compliance.

As 2026 unfolds, the interplay of tenant protections, affordability pressures and fiscal policy debates will continue to challenge even seasoned market participants. Staying informed, engaged in advocacy, and being proactive with clients will be vital as the real estate community adapts to this rapidly evolving landscape.

About the author: Dr. Jermaine Meadows is the Director of Government Affairs for the Bronx and Manhattan for the Hudson Gateway Association of Realtors.