New Jersey Voters Overrule Landlord Opposition and Bring Back $20 Rent Increase Limit
Voters in Elizabeth, New Jersey, have brought back a $20 limit on rent increases after years of legal fights. Nearly 69% supported the change, despite warnings from landlords that such a strict limit could make it harder to maintain rental properties.
The November 3 vote restored a rule that city leaders removed in 2022. Under the measure, landlords of covered apartments cannot raise monthly base rent by more than 3% or $20 over a 12-month period, whichever amount is lower.
For tenants already living in rent-controlled homes, the vote could provide relief from rising monthly costs.
Yet the new limit does not cover every rental property, and another decision awaits city leaders when the broader rent control ordinance expires in December 2027.
Which Rental Properties Qualify?
The $20 limit does not apply to every rental home in Elizabeth. Under the city’s Rent Control and Stabilization ordinance, it generally covers apartment buildings with five or more units, along with three- and four-unit rental properties where the owner does not live on-site.
Single-family rentals, two-family properties, and owner-occupied buildings with three or four units are exempt. Hotels, motels, and rooming houses are also excluded.
Newer apartment buildings may qualify for temporary exemptions under New Jersey law, generally lasting up to 30 years after construction. The city eliminated its previous permanent exemption for new construction in 2023.
Tenants who are unsure whether their apartment qualifies can contact Elizabeth’s Rent Control Office at 908-820-4181.
What Renters Save Long-Term
For tenants in covered properties, the change could make a noticeable difference in household spending.
Consider someone paying $1,500 a month. Under the previous 3% rule, their landlord could have raised the rent by $45 per month. The restored limit reduces that regular increase to $20.
Over the following 12 months, the tenant could save $300 compared with the larger increase, assuming both amounts would have taken effect for the full year.
At lower rents, the 3% limit still matters. Someone paying $600 a month would face a regular increase of no more than $18, since that amount is less than $20.
Elizabeth had used the dollar limit for decades before the City Council removed it in 2022. After that decision, landlords could generally seek annual increases of up to 3% without the old $20 ceiling.
Tenants now have the tighter limit back.
According to RLS Media, unofficial election results showed 8,814 votes supporting the measure and 4,003 opposing it.
Years of Fighting Between Tenants and Renters
Restoring the cap took more than a single election campaign.
During the summer of 2025, the FREElizabeth campaign gathered signatures from residents who wanted the old rule back. Working with housing advocates, the group pushed for a public vote and secured support from the City Council.
Landlords challenged the effort in court. They disputed the petition process and argued that the proposed rent restriction violated constitutional protections.
The legal fight delayed the referendum beyond the 2025 election. A separate attempt by the City Council to restore the cap also ran into trouble because the meeting lacked proper public notice.
On July 27, 2026, a Union County Superior Court judge dismissed the landlords’ constitutional challenge. An appeals court later rejected their request to block the referendum, according to Rutgers Law School.
With those challenges cleared, voters finally got their say in November.
The Other Side (the Landlords)
Property owners have warned that the cap could create problems for apartment buildings.
David Brogan, executive director of the New Jersey Apartment Association, told the New York Post that owners face rising property taxes, insurance bills, utilities, and maintenance costs. He argued that limiting rent increases without similar limits on those expenses could leave less money for repairs.
Tenant advocates see the issue differently. They believe stricter rent controls can help families remain in their homes rather than move when housing costs become too high.
The pressure is real across Union County. According to figures cited by Rutgers Law School, a worker would need to earn $42.40 an hour to afford the area’s fair-market rent of $2,205 for a standard two-bedroom apartment. The average hourly wage cited in the same report was $26.92.
Elizabeth also has a process for landlords who believe the regular cap would create financial hardship.
Through the city’s Fair Rental Housing Board, owners can apply for hardship increases and certain property improvement adjustments. Those requests require financial records and review rather than an automatic increase.
Another Vote Ahead?
Despite the clear election result, the restored rule has a deadline.
In October 2026, Elizabeth’s City Council approved Ordinance No. 6328, extending the city’s Rent Control and Stabilization chapter through December 31, 2027.
That means city leaders will need to act again if they want the broader ordinance to remain in place beyond that date.
For now, tenants who believe they have received an improper increase can contact the Elizabeth Rent Control Office. The office also handles disputes involving parking charges and reductions in services.
The city’s Fair Rental Housing Board holds public hearings on hardship requests, major rehabilitation, and capital improvements. Its regular meetings are scheduled for the third Wednesday of each month in City Council Chambers.
