NYC rent hikes unlikely as broker fee ban takes effect, StreetEasy economist predicts
Despite some opponents of the FARE Act proclaiming that the full costs of broker fees will simply be passed onto renters, StreetEasy economist Kenny Lee sees it a different way.
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Renters Face Sneaky Price Hikes in New York City
New York City renters know when it's time to find an apartment, it's always going to be an expensive venture. Even with a new broker-fee ban, it looks like renting will still be a costly option. The Fairness in Apartment Rental Expenses Act (FARE Act) went into effect on June 11 and does not allow a landlord's real estate agent to charge a fee to the tenants which was often 12-15 percent of the annual rent. That law will greatly reduce the costs for people to move into an apartment, but Bloomberg is pointing out how landlords are trying to find other ways to pass the costs onto their tenants by rolling it into their rent. On average, it costs a person $12,942 to move into a new apartment with a security deposit, first month's rent, and the dreaded broker fees, per StreetEasy. Now, that price is expected to average $7,537, it is a significant relief for those hoping to reside in one of the five boroughs. Still, the Real Estate Board of New York (REBNY) pushed back on the bill, and they are sending a warning to renters. "New Yorkers will soon realize the negative impacts of the FARE Act when listings become scarce, and rents rise. We will continue to litigate this case as well as explore our avenues for appeal," REBNY President James Whelan said, per ABC7 New York, in court after a judge denied their attempt to stop the FARE Act. History disagrees with REBNY though. Apartments with a broker's fee had "an average increase in rent around 5.3% compared to the rest of the market, which saw an increase of 4.6%, according to StreetEasy Senior Economist Kenny Lee. REBNY will continue to appeal the judge's ruling, but people are celebrating the financial relief in the housing sector. Living in New York City has always come with a premium price, but the FARE Act will make a Face Sneaky Price Hikes in New York City first appeared on Men's Journal on Jun 12, 2025
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6 days ago
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‘A historic day': StreetEasy removes no-fee button on NYC rental listings
NEW YORK (PIX11)—Are you looking for an apartment on StreetEasy? As of Wednesday, their website has changed: the no-fee button has been removed. This is because the forced broker's fee is now a thing of the past, as the FARE Act has gone into effect. The new law prohibits brokers who represent landlords from charging broker fees to tenants, according to the New York City Consumer and Worker Protection Office. More Local News Landlords and their agents must also disclose all fees tenants must pay in their apartment listings and rental agreements. Today is a historic day in New York City real estate, marking a major step forward in improving housing affordability for the city's renters. The FARE Act has modernized the rental process to finally bring our city in line with nearly every other city in the country, removing an unnecessary barrier to provide immediate financial relief to renters and make it easier for them to understand what they can afford. StreetEasy spokesperson Before the FARE Act was enacted, New York City and Boston were the only major US cities where tenants could be responsible for paying broker fees. If a landlord or an agent tries to charge a fee for a broker the renter did not hire, they can be reported to the NYC Department of Consumer and Worker Protection (DCWP). If residents see a listing that says an agent is working as a 'prospective tenant broker' or any rental listing that still has a broker fee, they are encouraged to report it to the DCWP. To read more on how to report landlords who still charge broker fees after, click here. Matthew Euzarraga is a multimedia journalist from El Paso, Texas. He has covered local news and LGBTQIA topics in the New York City Metro area since 2021. He joined the PIX11 Digital team in 2023. You can see more of his work here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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6 days ago
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NYC rent hikes unlikely as broker fee ban takes effect, StreetEasy economist predicts
Despite some opponents of the FARE Act proclaiming that the full costs of broker fees will simply be passed onto renters, StreetEasy economist Kenny Lee sees it a different way.
