What this real estate broker thinks of NYC's rent freeze policies

July 4, 2026 - 20:15

Frances Katzen, founder of the Katzen Team at Douglas Elliman, recently shared her concerns about New York City's proposed rent freeze policies during an appearance on Market Domination Overtime. The measures, introduced by Mayor Zohran Mamdani, aim to cap rent increases across much of the city's rental stock. But Katzen argues the approach could backfire badly for both landlords and tenants.

According to Katzen, the rent freeze creates a difficult situation for property owners who already face rising costs for maintenance, taxes, and insurance. When landlords cannot raise rents to cover these expenses, she says, they often defer repairs or stop investing in their buildings. Over time, this leads to deteriorating housing quality and fewer available units. Katzen warned that the policy might actually shrink the city's housing supply rather than protect it.

She also pointed out that the freeze discourages new construction. Developers, she explained, are less likely to build rental housing if they cannot project future income growth. This is especially troubling in a city where demand for apartments already far outpaces supply. Katzen stressed that the city needs more housing, not policies that make building less attractive.

While the mayor's office frames the rent freeze as a way to keep housing affordable for working families, Katzen believes the long-term effects could hurt the very people the policy aims to help. She called for a more balanced approach that protects tenants without crushing the financial viability of the rental market.