Rent stabilization is an official system of guidelines and restrictions that helps curtail rising rents in the country's largest cities. Rent stabilization is different from "rent control" in that it regulates what percentage is allowable for rent costs to rise each year.
Rent stabilization efforts are usually mandated by some public housing office or committee — it all depends on the specifics of local laws.
Rent stabilization is not going to be found in the majority of cities across the country, because for the most part, there isn't a need. However, in large cities, rent can increase very quickly and the rental market can get out of control fast.
Rent stabilization is usually introduced when there's been a recognizable instance of rapidly inflating rent — like New York City from the mid-'60s to the '80s.
Rent stabilization might sound like a fantastic initiative, however, all actions have consequences. Here are some of the pros and cons of rent stabilization.
Rent stabilization is based on a percentage. Property owners have a regulated maximum percentage allowable to raise rent costs. This percentage is dictated by some public authority. In New York City, this body is known as the Rent Guidelines Board.