Weeks Into the FARE Act—Here’s What We’re Seeing

When the FARE Act officially took effect in NYC this summer, eliminating most broker fees for renters, the reaction was mixed—tenants largely rejoiced, while many in the real estate industry warned of ripple effects. Now that we’re a few weeks in, are those fears being realized—or were they overblown?

A New York Times analysis of 1.3 million listings on StreetEasy suggests that some unintended consequences are already beginning to surface. A number of landlords appear to be raising rents to offset the cost of paying broker fees themselves. Even more troubling, the shift has reportedly triggered a wave of scam listings, with fake landlords and brokers preying on desperate renters searching for no-fee deals in a competitive market.

Interestingly, StreetEasy—which supported the law—offers a different perspective. According to their internal data, median rents haven’t risen significantly since the FARE Act took effect, despite earlier warnings that they would. Their numbers suggest that, overall, the rental market has remained relatively steady.

Meanwhile, opponents of the law, led by the Real Estate Board of New York (REBNY), filed a claim arguing that the FARE Act unfairly targets brokers and limits free speech, calling it unconstitutional and superseded by state law. Their request for a preliminary injunction was denied by U.S. District Judge Ronnie Abrams, who had previously dismissed a similar attempt in early June to block the law’s implementation. 

While both sides make compelling arguments, it’s still too early to determine the law’s full impact. The effects may take months to settle—especially as lease renewals and fall rental activity pick up—and will likely vary by neighborhood, price point, and landlord approach.

As for the discrepancy between The New York Times and StreetEasy, the difference may come down to methodology. The Times draws on anecdotal evidence and early examples, while StreetEasy relies on aggregated data across its platform.

One thing is clear—both renters and landlords are navigating a period of transition, and the long-term effects of the FARE Act are still unfolding.

Some sound advice as we watch this play out:

• Renters: Take extra care to verify listings, understand your rights, and ask the right questions before signing a lease.

• Landlords: Transparency and fair pricing can go a long way in attracting (and keeping) great tenants in today’s evolving market.

Bottom line—stay diligent.

Serj Markarian