The City of Passaic just made a big move in the rental housing game. Officials passed a rent control ordinance that caps annual rent hikes at 3%—down from the old 6%—and scraps vacancy decontrol entirely.
They say this bold change aims to protect working-class and immigrant communities from getting pushed out. Other cities in New Jersey are probably watching, wondering if they’ll need to follow suit. Not surprisingly, the decision’s fired up debate between housing advocates and landlord groups, both arguing over how to keep homes affordable without scaring off investment.
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What the New Rent Control Ordinance Means for Tenants
With this policy, Passaic landlords can’t jack up rents when tenants move out anymore. That’s vacancy decontrol, and it’s gone for good in most of the city’s older multifamily buildings—specifically, anything built before 1996.
The main idea? Make rents more predictable for folks who’ve watched prices spike out of nowhere for years.
Key Provisions of the Ordinance
Here’s what’s actually changing:
- Rent hike cap: Annual increases can’t top 3% now, instead of 6%.
- No vacancy decontrol: Rents stay regulated, even after tenants leave.
- Capital improvements clause: Landlords can apply for 5–10% increases if they make major, approved upgrades.
For a lot of tenants, that could be the difference between keeping their place or having to pack up and go.
The Supporters’ Perspective
Groups like Make the Road New Jersey and the Fair Share Housing Center are thrilled. They see the ordinance as a real shot at keeping communities stable and stopping displacement.
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Closing the vacancy decontrol loophole, they argue, helps keep long-term residents from falling into homelessness and keeps neighborhoods—often full of immigrants—intact.
A Focus on Stability
Supporters talk a lot about stability. When rent hikes are predictable, families can settle in, get involved at local schools, and support nearby businesses.
The Critics’ Counterargument
But not everyone’s happy. The New Jersey Apartment Association warns that rent control could discourage investment in rental properties.
They worry landlords might stop maintaining buildings, and that quality could slip. Instead of more restrictions, critics say, lawmakers should make it easier to build new housing all over the state.
Investment Versus Regulation
Landlords and developers insist they need flexibility to set rents based on the market. Otherwise, they say, housing growth could stall and shortages might get worse—hurting renters in the long run.
Passaic’s Place in the Statewide Housing Picture
As of September 2025, the average rent for a one-bedroom in Passaic sat at $1,609. That’s cheaper than Jersey City’s $3,210, but a bit more than Newark’s $1,541.
Now, Passaic’s one of just a handful of New Jersey towns with strict rent controls and a total ban on vacancy decontrol. It’s definitely made itself a standout when it comes to tenant protections.
Implications for Neighboring Cities
With Jersey City’s sky-high rents, local leaders and advocates might eye Passaic’s approach—either as inspiration or as a warning. It’s another twist in North Jersey’s ongoing, messy conversation about what “affordable” even means anymore.
Why This Matters for Jersey City Residents
Even though Passaic passed this legislation, the effects don’t stop at its borders. Rent control debates tend to ripple into nearby markets.
With the big differences in average rent, changes in one city’s policy could easily influence migration, investment, and what tenants expect all across the region. If you’re thinking about moving, the cost gap between Passaic and Jersey City might weigh heavily on your decision about where to stay in Jersey City or whether to look somewhere more affordable.
This ties right into bigger questions about things to do in Jersey City, the perks of different city districts, and how easy it is to get to Jersey City from nearby towns for work or fun. If you’re a long-timer or just browsing Jersey City hotels, it’s smart to keep an eye on these legislative changes.
They could shape the local rental market and shift what it’s like to live in North Jersey. Honestly, who knows what’s next?
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Here is the source article for this story: This N.J. city just took an important step to keep rents from skyrocketing
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