Insurance costs across New York’s affordable housing stock keep climbing, and the timing couldn’t be worse. Mayor-elect Zohran Mamdani wants to freeze rents on stabilized units. Owners say margins already look razor thin, according to a New York Post report.
A new Furman Center analysis, first highlighted by Bloomberg, spells it out.
Insurance expenses for rent-stabilized buildings rose about 150% between 2019 and 2025. That jump alone reshapes operating math.
Other costs didn’t stay quiet. Maintenance and utilities ran ahead of inflation, sometimes by wide margins. Landlords say they’re boxed in, with fewer levers left to pull.
The study covers roughly 16,600 buildings that rely almost entirely on rent-stabilized income to stay afloat. Real estate groups warn a rent freeze could push owners to defer upkeep. Conditions wouldn’t collapse overnight. Decline tends to creep.
These properties account for 47% of the city’s nearly 1 mn stabilized apartments. All were built before 1974. In each building, at least 90% of units qualify as affordable.
About 456,000 apartments fall into this deeply affordable category. That stock matters. Replacing it at scale isn’t realistic.
Geography concentrates the risk. Northern Manhattan and the Bronx show dense clusters, with Brooklyn neighborhoods like Flatbush and Midwood close behind. Location shapes exposure, for insurers and owners alike.
The New York Housing Conference warned as far back as 2024 that soaring insurance premiums threaten housing affordability. They pointed to climate losses, inflation, and shifts in insurer appetite.
According to our analysts, fewer carriers still write multifamily policies, and some appear reluctant to insure buildings simply because they house affordable units or sit in neighborhoods like the Bronx. The pattern feels familiar.
Costs beyond insurance add pressure. Maintenance spending rose 39% since 2019. Utility bills climbed 31%. With rent growth capped, owners often postpone repairs rather than absorb losses.
The Furman report flags spending patterns that resemble deferred maintenance more than efficiency gains. Fixes get delayed. Problems stack.
The data shows the outcome. Housing code violations in those 456,000 deeply affordable units increased 47% between early 2021 and 2025. Enforcement ramped up and tenant complaints rose, but the spike remained sharper in older stabilized buildings.
Leaks increased. Mold complaints followed. Serious safety issues appeared more often. Insurance costs may look abstract, but their effects land inside apartments, fast.
