July 04, 2025
With the FARE Act now in effect, New York City landlords are officially responsible for covering broker fees—something tenants historically had to cough up themselves. While this move is being celebrated as a win for renters on paper, many in the industry, including seasoned brokers, are already warning: rents are going up. Fast.
Douglas Elliman’s Keyan Sanai put it bluntly—rent hikes of “hundreds of dollars” a month are already in motion. Why? Because landlords are now baking in those broker fees into the monthly rent. It’s not surprising: if a landlord is forced to cover the $5,000 fee to rent out an apartment, that cost will show up somewhere. Usually? Right in the rent.
Still, despite higher monthly costs, most renters are staying put. Occupancy is near record highs, and Manhattan ranked as the sixth hottest rental market in the country this spring. Brooklyn isn’t far behind, tied for eighth with the Stamford-Bridgeport corridor.
For context, the median asking rent in NYC (not counting rent-regulated units) is sitting at $3,500. To avoid being rent-burdened, a household would need to earn at least $140,000 a year. And yet, more than half of NYC renters are rent-burdened. Even so, they’re not exactly packing their bags.
The idea of a new wave of renters fleeing to the suburbs, like we saw during the early pandemic days, doesn’t seem to be happening again—at least not on a large scale. Connecticut’s Fairfield County rents are also up (around $3,100/month), and new luxury developments there are offering concessions to fill units, like two free months of rent on a 20-month lease at Stamford’s 18 Dock.
Suburban brokers say the NYC transplants they're working with are more focused on buying now, usually motivated by family needs, schools, or more space—not just avoiding NYC rents.
Here’s the bottom line: while this new law was designed to shift financial burden off renters, it’s likely to keep monthly housing costs high. If you’re a renter hoping to save money long-term, you may want to look beyond just upfront fees and take a hard look at rent trends, lease terms, and your long-term housing goals.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
