2. Operating expenses: Risen rapidly, forcing LLs to spend more money to keep properties afloat. Multifamily operating expenses rose 28% from '23-24. Insurance is a core driver.

3. Political instability: the prospect of changes like HUD funding cuts or GSE privatization could also drive distress.

Historically low interest rates during COVID meant landlords refinanced or acquired new property. Now as loans come due rates are much higher, dampening speculation and refinance projections. It's a considerable share: In 2025, $300B in multifam mortgages matured, almost 15% of all multifamily debt.

Speculative bets on rising property values means landlords operate on thin margins. They have little wiggle room if operations become more expensive or property values fail to rise at the rate they project. This is where financial distress kicks in.

But what's driving this distress?

update

Here's what they did:

1️⃣ Petitioned rent-stabilized tenants to only vote for candidates who want a rent freeze

2️⃣ Endorse candidates who pledge to freeze the rent

3️⃣ Mobilize tenants to vote, focusing specifically on rent-stabilized buildings (41% of all tenants in the city!)

This model is politically popular. Unsurprisingly, building affordable and beautiful homes where you can live near friends and family wins elections time and time again. Tenants, labor unionists, and progressive politicians won and sustain this model. That's one of the reasons it's spreading here.

Vienna's public ownership of housing enables climate action. The Viennese did not know what was coming in terms of climate change when they began this work! But as needs intensified, they've been able to mobilize this social housing as a key site for climate action. Public goods for public benefit.

This model, paired with rent control, ensures permanently affordable housing for a huge range of Viennese households. We show that rents in Vienna are much lower than other European cities and income inequality is less stark than what we see in many US cities.

As climate-fueled disasters become the norm, tenant organizing can get the goods.

After Hurricane Helene, North Carolina Tenants Union won lower rents and decreased evictions for public housing tenants in Asheville.

During a heat wave last year, Kansas City Tenants won AC unit repairs for seniors.

LATU is also pushing policy demands rooted in what tenants need right now as the rental market enters a post-disaster frenzy: eviction moratorium, rent freeze, and seizing vacant units for shelter. They (along with many other groups!) are targeting City Council members to realize these demands.

As the fires broke out, local chapters like La Union de Vecinos in Boyle Heights got to work distributing over 3,000 masks to their neighbors in one day. They’re continuing mutual aid work and mask dispersal at local union meetings this week as they grow their ranks.

(photos from LATU twitter)