From New York to Everywhere: Valuation Approaches to Smarter Rent Control
In this issue:
- Modernizing Rent Control: How appraiser involvement could protect stakeholders
- Texas Toast: Limited tickets remain to this exciting launch event
- PAREA Update: New York finalized and implemented first program
Insights
Improving Rent Control with Appraisal Input, Starting in New York
Rent control and rent stabilization programs are designed to protect tenants from displacement, yet in many cities they struggle to balance affordability with the economic realities of maintaining aging housing stock. New York City illustrates these tensions particularly well, but the challenges and potential solutions are common wherever rent regulation exists.
One underutilized opportunity is the structured involvement of independent real estate appraisers. By introducing objective, professional valuation into key regulatory decisions, jurisdictions can move beyond rigid formulas toward fairer, more transparent, and more sustainable rent regulation.
Why Appraisers Are Well Suited to This Role
Professional appraisers provide impartial, defensible measures of value based on standardized methodologies and verified market data. Their role is not to advocate for landlords or tenants, but to establish credible benchmarks, an especially valuable function in regulatory systems where disputes, litigation, and political pressure are common.
Transferable Mechanisms for Appraiser Involvement
- Vacant Unit Rent Resets
Rather than automatic rent increases or vacancy decontrol, jurisdictions could require independent appraisals to establish a reasonable regulated rent when a unit becomes vacant. New York proposals such as the Local Regulated Housing Restoration Adjustment offer a model that could be adapted elsewhere, preventing extreme rent jumps while recognizing legitimate market changes. - Rent Board Decision Support
Whether in New York or other rent regulated cities, rent boards typically rely on broad economic indicators. Incorporating independent appraisals, adjusted for regulatory constraints, would provide localized, market-based insight to inform annual rent decisions and improve public confidence in the process. - Capital Improvements and Unit Upgrades
Appraisals can help verify the necessity and contributory value of major building improvements before costs are passed through to tenants. For unit level upgrades, appraisal analysis can tie allowable rent increases to actual value added, rather than to spending formulas alone. - Independent Review and Oversight
Cities could establish third-party review bodies supported by certified appraisers to resolve disputes over rent increases, capital improvements, or rent board determinations. Appraisal-based fair market rent benchmarks can also provide defensible ceilings that reflect local market conditions while preserving tenant protections.
A Scalable Path Forward
While New York provides a clear case study, these concepts apply broadly to any jurisdiction with rent control or rent stabilization. Integrating independent appraisers does not weaken tenant protections, it modernizes rent regulation by grounding policy decisions in transparent, data-driven analysis
As cities continue to search for durable housing solutions, appraiser-supported rent regulation offers a scalable framework, one capable of reducing conflict, encouraging responsible reinvestment, and restoring confidence in regulated housing systems.
Register today for Texas Toast -- Limited Tickets Remain!
Your Benefits
Appraisal Institute Find an Appraiser
Appraisal Institute's comprehensive real property valuation professional’s database lists all practicing AI members from all over the world. It has become an indispensable resource to those seeking real property valuation services, as well as a source of business for AI members themselves.
Update Your Member Profile Today
Trending Topics Thursdays:
Sign up for our next free webinar
Crypto & Real Estate: Tokenization, Valuation, and the Role of Independent Appraisers
January 15, 2026 – 11:00 a.m. CT
As blockchain and cryptocurrency technologies continue to disrupt traditional finance, real estate is emerging as a frontier for innovation through tokenization. This panel will explore how property assets are being fractionalized and traded on blockchain platforms, the legal and regulatory implications, and how valuation professionals fit into this rapidly evolving landscape.
Speaker: Peter Gaffney, Director of DeFi & Digital Trading, Inveniam
Advocacy Updates
PAREA Is Now Live in New York
As of January 1, 2026, New York has officially finalized and implemented its Practical Applications of Real Estate Appraisal (PAREA) regulations, taking a significant step in modernizing the appraisal profession and expanding access to licensure.
With the regulations now in effect, aspiring appraisers in New York can immediately enroll in the Appraisal Institute’s PAREA program.
What This Means for Aspiring Appraisers in New York
PAREA offers an alternative to the traditional supervisor trainee model. Instead of relying solely on one-on-one mentorship, participants gain required experience through a structured, standardized curriculum.
New York’s adoption of PAREA provides a flexible new pathway to licensure while maintaining consistency, quality, and oversight. Key benefits include:
- A clearly defined learning pathway
- Exposure to real world appraisal scenarios
- Standardized evaluation and feedback
- Expanded access for candidates who previously faced barriers to entry
Why This Matters for the Profession
New York’s move reflects growing national momentum to modernize appraisal education and address workforce development challenges.
By enabling PAREA, regulators are helping to:
- Expand the pipeline of future appraisers
- Reduce bottlenecks in the trainee supervisor model
- Support diversity, equity, and inclusion across the profession
- Maintain high standards while embracing innovation
The Appraisal Institute has been preparing for this transition, ensuring its PAREA offering meets both national standards and New York’s state-specific requirements.
Enrollment Is Now Open
With regulations finalized, New York candidates can now enroll in AI PAREA and begin their pathway toward licensure.
Interested individuals are encouraged to review program details, eligibility requirements, and timelines to determine whether PAREA aligns with their professional goals.
This marks an important moment not only for New York, but for the future of appraisal education nationwide.
The AI PAC Chapter Challenge is officially underway!
Chapters across the country are stepping up to support AI PAC and strengthen our voice on Capitol Hill. This friendly competition gives every chapter, large and small, a chance to make an impact while earning recognition for participation and performance. Now is the time to participate-support your chapter’s effort by making a contribution to AI PAC today and help ensure appraisers remain heard in Washington when it matters most!
Real Estate Horizons
Stay updated and check out links to the latest major real estate industry stories!
More Opportunities to Learn
Search the latest educational offerings! Find National and Chapter-sponsored classroom, synchronous, and online opportunities.
Your Community
63 TAF PAREA Scholarships in December
A total of 63 scholarships were awarded in December to support individuals pursuing residential appraisal licensure and certification through the TAF PAREA Scholarship Program administered by the Appraiser Development Initiative.
The scholarships include 54 Licensed Residential (LR) awards and 9 Certified Residential (CR) awards, reflecting continued interest in PAREA as an experience pathway for residential appraisers.
PAREA provides a structured alternative to the traditional supervisory appraiser model, allowing trainees to gain practical appraisal experience through standardized assignments and assessments designed to reflect real-world residential appraisal work and comply with the Uniform Standards of Professional Appraisal Practice (USPAP).
The Appraisal Institute maintains the only currently Appraiser Qualifications Board (AQB)–approved PAREA programs for both the Licensed Residential and Certified Residential classifications. Scholarship recipients will use the awards to participate in these programs and complete required experience toward licensure or certification.
The December scholarship awards highlight continued momentum for PAREA and underscore ongoing efforts to expand access to appraisal experience while maintaining professional and public trust standards.
Until Next week
Team Appraisal Institute
