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2026-07-16 04:12:12
Fitch Ratings points out that New York City's rent freeze policy will put pressure on the operation of rent-controlled multi-family homes and increase the associated risks of commercial mortgage-backed securities (CMBS). After the policy was implemented, the income growth potential of owners of rent-controlled multi-family homes was directly limited, while costs such as property maintenance and labor remained within normal fluctuation ranges, thus increasing the pressure on the break-even point of operation. Once the cash flow of these properties contracts, their mortgage repayment ability will also be affected, ultimately further increasing the default risk of CMBS linked to these assets.
