Newark will fine landlords for ‘unconscionable’ rent increases over 5%

Karen Yi

19 June, 2023

Newark, New Jersey officials will limit yearly rent increases on newer construction and owner-occupied units to 5% – testing the limits of a state law that bans “unconscionable” rent spikes but doesn’t define how much is too much.

The new ordinance comes amid a boom in new city development and an affordability crisis fueled by inflation and rising rents.

“The affordability crisis in Newark is getting worse and likely to get much worse over time,” David Troutt, founding director of the Rutgers Center on Law in Metropolitan Equity, said during a City Council hearing on the ordinance this month.

He said the market needs regulatory constraints.

“The fact that the city has in many respects become a playground for outside investors who recognize that this is a captive population in one of the most expensive housing regions of the country so that there’s no place left to go. The city of Newark, therefore, is ripe for rent extraction,” he said.

Continue reading this press release from the Gothamist in its entirety below:
Newark will fine landlords for ‘unconscionable’ rent increases over 5%