Are apartment rents increasing in New York City when a lease is renewed?

That seems pretty standard but you should negotiate with him. Also check Craigs or a local realtor that will tell you what others are getting for similar apts

it’s not rent controlled or rent stab so it the LL can probably get what he wants.

Sounds a bit steep but property is probably taxed pretty high. So I would assume that he’s probably going to make his tenants pay the difference. If you can afford it and you like it than stay. If not look for another place. But you know that apartments anywhere around 86th street would be expensive. If you want cheaper than you may have to move out to one of the other boroughs.