July 19, 2025
When the FARE Act went into effect last week, it was hailed as a major win for NYC renters. The law eliminated broker fees for tenants—unless they hired a broker themselves—shifting the responsibility to landlords who brought in an agent. But within days, we saw a major unintended consequence: a sharp spike in rent prices.
According to UrbanDigs, average rents in Manhattan jumped 15%—from $4,750 to $5,500—in just one week. The reason? Many landlords are now rolling the broker fee into the monthly rent, which technically complies with the law but ends up costing tenants more in the long run. Instead of a one-time fee, renters are now paying the price over 12 months—and then some.
This quick market reaction created ripple effects across the board. Roughly 2,000 listings disappeared from StreetEasy overnight. Some brokers and landlords are even operating in what’s being called a “shadow market,” bypassing public listings altogether.
It’s starting to feel like the Wild West again, where knowing the right contact is more important than what’s posted online.
As brokers, we’re hearing frustration from all sides. Renters are disheartened by the sudden price jumps and limited options. Landlords are adjusting to the new compliance burdens and rethinking how they market their listings. Even tenants who want to pay a broker fee (to get the lower rent) are being told that’s now illegal.
Here’s the reality: any sweeping change in real estate regulation will come with growing pains. The spirit of the law was to reduce upfront costs for renters, and in some cases it will. But in many others, it’s simply shifted costs into a different format—and possibly created more confusion in the process.
For renters: keep your eyes open, ask questions, and make sure any fees are clearly disclosed. And for landlords and brokers alike, transparency is now more important than ever.
Let’s see how this plays out over the next few months—especially as the rental market heats up for summer.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
