In a 5-4 vote on Thursday night, the city's Rent Guidelines Board has approved rent increases for rent-stabilized apartments.
Rents will go up 4 percent for one-year leases and 7.75 percent for two-year leases.
Tenants had wanted a much smaller increase, or even a rent freeze, saying they already struggle to make ends meet.
Mayoral candidates Christine Quinn, Bill de Blasio and John Liu all spoke in favor of a rent freeze at a public hearing last week.
"I am deeply disappointed that New Yorkers will face these rent increases," Quinn said in a statement on Thursday.
"The Board must schedule hearings in all five boroughs next year and offer all New Yorkers an opportunity to stand up for the future of rent stabilized housing in New York City," she added, referring to the fact that the Rent Guidelines Board does not hold meetings outside of Manhattan.
Landlords on the other hand say they are dealing with higher property taxes and water rates, and that rents should go up to reflect those higher costs.
This is the largest rent increase the board has approved since 2008. It will be in effect for rent renewals between October 1, 2013 and September 30, 2014.