Renters Face Sneaky Price Hikes in New York City
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 difference.Renters Face Sneaky Price Hikes in New York City first appeared on Men's Journal on Jun 12, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
39 minutes ago
- Yahoo
July CPI report expected to show inflation accelerated amid tariff pressures
July's Consumer Price Index (CPI) is expected to show prices rose at a faster clip annually compared to in June. The report, due Tuesday at 8:30 a.m. ET, comes as investors stay alert to how much President Trump's tariffs are starting to affect consumer costs. According to Bloomberg data, headline CPI is expected to have increased 2.8% year over year in July, up from a 2.7% rise in June. On a monthly basis, prices are forecast to increase 0.2%, a slight slowdown from June's 0.3% gain, driven by lower gasoline prices and expectations of moderately softer food inflation. On a "core" basis, which strips out volatile food and energy prices, the annual inflation rate for July is expected to tick up to 3.0% from June's 2.9%, indicating that rising goods inflation is no longer being offset by easing services inflation. Core prices are also projected to climb 0.3% month over month, outpacing the previous 0.2% rise seen in June and marking the strongest gain in six months. In June, signs of tariff-driven cost pressures emerged, with apparel prices up 0.4% on a monthly basis and footwear rising 0.7% after several months of declines. Furniture and bedding prices also gained 0.4%, reversing May's 0.8% drop, another signal that these higher costs are starting to reach consumers. Read more: What Trump's tariffs mean for the economy and your wallet "The July CPI will bring further signs of higher tariffs pushing up prices," Wells Fargo economist Sarah House wrote last week. "It is still early in the price adjustment process to see how higher import taxes will ultimately be distributed between the end-customer, domestic sellers and foreign exporters." "At the same time, growing consumer fatigue is making it more difficult to raise prices in general," House added. "We continue to expect inflation to pick up, but not ratchet higher, over the second half of the year, with both the core CPI and core PCE deflator returning to around 3% in the fourth quarter." Tuesday's report is set to arrive amid ongoing trade developments that could further alter the US effective tariff rate, now hovering near 18.6% — the highest since 1933, according to the latest Yale Budget Lab estimate. Still, markets are increasingly betting the central bank will lower interest rates at its September meeting, driven largely by concerns over the US labor market's health after significant downward revisions, alongside persistent inflation. "CPI could leave [the] Fed with dual headaches," Citi analyst Stuart Kaiser wrote in a preview of the report, adding investors will likely focus on updates to core goods prices. Read more: How to protect your savings against inflation "Goods inflation ticked up last month and may be an issue in upcoming reports too, as tariffs make their way through the system," Kaiser said. "The FOMC had 2 dissents in July and there is some uncertainty about the path forward (particularly if inflation heats up) although the direction of travel is clearly lower for policy rates." As of Tuesday afternoon, investors were placing an 87% probability the Fed cuts rates by 0.25% at its September policy meeting, up from 57% last month, according to the CME FedWatch Tool. Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
41 minutes ago
- Bloomberg
UBS Shareholder Offers $619 Million Stake via Goldman Sachs
An unidentified institutional UBS Group AG shareholder is offering its entire stake in the Swiss lender worth around 503 million Swiss francs ($619 million), taking advantage of a recent rally in the banks shares. The investor is offering around 16 million shares in an overnight placing, which is expected to price at 31.46 Swiss francs per share, according to terms seen by Bloomberg. The price is 1.4% discount to the bank's closing price of 31.91 Swiss francs on Monday.
Bloomberg
an hour ago
- Bloomberg
Office of Personnel Management Braces for DOGE Cuts
Scott Kupor, Director of the US Office of Personnel Management joins to discuss his appointed by Trump to lead efforts to modernize the federal workforce at an agency that effectively serves as the government's HR department, overseeing hiring, recruitment, benefits and workforce policy for more than 2 million civilian employees. And how his department is being affected by DOGE cuts. (Source: Bloomberg)
