New York City Rental Claims Nearly Double Since 2021
News related to:Milford Street Captive Insurance · 2 min read
Milford Street Captive Insurance released a new analysis on September 11, 2026, revealing a significant increase in legal claims against residential rental properties in New York City. The study, conducted by LegalClaimsAI and the NYU Furman Center, found that the number of claims nearly doubled since 2021, with government-subsidized and heavily rent-stabilized buildings facing a disproportionately higher rate of claims.
According to the analysis, the total number of claims filed citywide grew by 29.6% from 2021 to 2022 and by another 29.2% from 2022 to 2023. The rate of claims per 100,000 units increased by 69.6% between 2021 and 2024, reaching a high of 218.32 before easing slightly to 200.3 in 2025. The study matched a data set of 56,289 individual claims filed against 18,745 unique residential rental buildings comprising 916,207 units.
The analysis categorized buildings into eight types, including market-rate, government-subsidized/income-restricted, mixed-income, public housing, Mitchell-Lama, and three tiers of legacy rent-stabilized housing. Government-subsidized, income-restricted buildings and buildings that are 90%+ rent-stabilized consistently had the highest number of claims per unit, outpacing market-rate housing and buildings with fewer rent-stabilized units.
Premises claims were the most common, with affordable housing types, public housing, government-subsidized/income-restricted housing, and heavily rent-stabilized buildings, showing higher rates of premises claims than market-rate and mixed-income buildings. Tort/negligence claims within government-subsidized, income-restricted housing saw a significant increase, growing 61.82% from 2022 to 2023 and a further 57.48% from 2023 to 2024.
The Bronx and Brooklyn recorded the highest total number of claims, with the Bronx also posting the highest claims rate per unit. The Bronx's peak was 253.42 claims per 100,000 units in 2024, compared to 151.7 per 100,000 units in Brooklyn. All five boroughs saw claim volumes rise sharply.
John A Crotty, CEO of Milford Street Captive Insurance, expressed concern over the impact of unchecked litigation on affordable housing. "These legal claims translate into higher insurance premiums, which starves our rental housing stock of desperately needed resources. This disproportionately affects New York City's Housing Preservation and Development's portfolio of subsidized and regulatory agreement properties, putting a strain on New York's taxpayers."
Keith Minella, CEO of LegalClaims.AI, highlighted the potential of their technology to provide solutions to complex issues.
The analysis underscores the urgent need for policymakers to address the rising legal claims against affordable housing in New York City. The findings suggest that the burden of these claims disproportionately affects government-subsidized and heavily rent-stabilized buildings, potentially leading to a decline in housing quality and availability.