The Journal. · Sunday, September 27, 2026
Kenny Bergos stated that under current rent regulations, the baseline rent for some apartments is below the operating cost. He cited data suggesting it costs $13.50 per month on average just to operate an apartment, leading to increased vacancies and a reluctance from banks to lend on these properties.
“And then the baseline rent begins at a number that's likely below the operating cost per month for reference.”
“The rent guidelines board, which is the regulatory body in New York City that imposes the rent freeze or the annual rent changes, their data says it costs $13.50 on average just to operate the apartment.”
“So we're seeing more and more vacancies occur.”