The “good cause eviction” law in New York limits rent increases using the Consumer Price Index (CPI). Landlords must justify rent hikes above a certain threshold, with tenants able to dispute increases in court. The law aims to prevent excessive rent hikes, suggesting annual increases should not exceed CPI plus 5%. In 2024, this set a soft rent cap at 8.8%. However, the law may unintentionally encourage landlords to increase rents near this cap, impacting tenants. While the law helps prevent evictions, it may ultimately lead to higher rents than before, following the behavioral principle of “anchoring,” like cab drivers’ tips.
Consumer Price Index (CPI)
