August 4, 2025 | New York City
A landlord in the West Village is opting to leave a 1,200-square-foot, rent-stabilized two-bedroom vacant—despite NYC’s housing crisis. After the longtime tenant passed away, the owner estimated a full renovation would cost more than $100,000, yet rent laws only allow $30,000 of that investment to be recouped via rent increases.
That would push the rent to just $1,428 per month, yielding a 2% return—far below the nearly 5% yield of a 30-year Treasury note. The landlord argues that not only is the return unattractive, but unlike tenants, Treasuries don’t call 311, clog toilets, or require court battles.
Critics say landlords exaggerate renovation costs, but this owner claims that even a modest update risks triggering legal battles over “substandard” work. The result: more than 50,000 rent-stabilized units remain vacant—housing that owners say could be back online in six months with legislative reform.
The earliest change could come is 2026—if lawmakers act at all.