What does rent-stabilized housing regulate?

Rent-stabilized housing primarily regulates the terms of lease renewals and the amount by which rents can increase from year to year. This form of regulation is designed to provide tenants with a degree of security and predictability in their housing costs, preventing landlords from making excessive rent increases that could displace long-term residents. By establishing guidelines for renewals and annual rent hikes, rent-stabilization laws ensure affordability and stability within the housing market for eligible tenants.

The focus on lease renewal terms allows tenants to have the option to renew their leases under certain conditions, thereby promoting tenant retention and community stability. This regulation is particularly important in high-demand areas where the cost of living may otherwise drive up rents significantly and reduce housing access for lower- and middle-income individuals.