In a recent Passaic Council meeting held on September 2, 2025, discussions centered around the implications of the Rent Stabilization Ordinance and its impact on the local housing market. The meeting highlighted significant concerns regarding the affordability of housing and the financial strain on both renters and homeowners in Passaic City.

One of the key points raised was the potential decline in property values due to rent restrictions. A council member, referred to as George, expressed that if landlords are unable to increase rents to cover maintenance costs, they may be forced to sell their properties. This scenario could lead to a decrease in property values, which would subsequently reduce tax revenues for the city. The council member emphasized the need for a balanced approach to taxation, warning that lower property values could result in increased taxes on other properties to maintain city services.

The meeting also addressed the alarming rise in eviction rates, which have surged from 2,652 in 2021 to 6,194 in 2024, marking a significant increase in housing instability for residents. This trend reflects broader economic challenges, as many individuals struggle to meet rent obligations. The council discussed the implications of these evictions on the community, noting that a growing number of residents are unable to afford their housing costs.

In addition to the eviction crisis, the council examined mortgage delinquency rates, which have also escalated. Nationally, the percentage of homeowners late on mortgage payments rose from 0.6% in 2021 to 3% in 2024. In New Jersey, this figure increased from 0.6% to 1.8%, while Passaic County saw a jump from 0.5% to 2.3%. These statistics indicate a troubling trend of financial distress among homeowners, further complicating the housing landscape in the region.

The discussions at the council meeting underscored the urgent need for effective policies that address both rental and homeownership challenges. As the city grapples with rising evictions and mortgage delinquencies, finding solutions that ensure housing stability for all residents remains a critical priority. The council's next steps will likely involve exploring strategies to balance the needs of renters, landlords, and homeowners while maintaining essential city services.