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Skyrocketing premiums are putting pressure on New York’s rent-stabilized housing stock, forcing landlords to cut corners and raising concerns over long-term affordability and upkeep. 

Insurance spike: Insurance premiums for NYC’s rent-stabilized buildings have surged 150% since 2019, according to a new report from NYU’s Furman Center. The more than 450,000 affected units are a key part of the city’s affordable housing stock, but their owners now face fast-rising operating costs outpacing all other expenses. 

Why so high?The surge in costs stems from rising climate risks and fewer insurers covering multifamily housing, with some reportedly discriminating against affordable units based on income and subsidies. JPMorgan Chase’s Jane Silverman said these properties are being treated “very differently” by insurers. 

Landlords cut elsewhere: Despite rising costs, inflation-adjusted operating expenses fell just over 3%, suggesting landlords are cutting back elsewhere. The result: a 47% rise in housing-code violations since 2021, well above rates in less regulated buildings. 

Crucial housing stock: Most of these pre-1974 buildings rent for under $1,344, affordable to households earning 40% of the area median income. With over a million such units citywide, preserving them is key to Mayor Mamdani’s housing-focused agenda. 

➥ THE TAKEAWAY

Affordability at risk: Rising insurance costs aren’t just a landlord problem. They’re a silent threat to NYC’s affordable housing infrastructure. Without intervention, the city could see a steady erosion of its rent-stabilized stock.