One year ago, New York City’s FARE Act banned landlords from passing broker fees on to tenants. A full year of data is now in, and the results are more complicated than either side predicted. Here is what actually happened, in plain numbers.
Do renters still pay broker fees in NYC?
In most cases, no. The FARE Act took effect June 11, 2025 and changed the rule so that whoever hires the broker pays the fee. Since landlords typically hire the broker to list an apartment, landlords now generally pay it, and every cost a tenant will owe must be disclosed upfront. Before the law, NYC renters routinely paid a broker fee of 12 to 15% of the annual rent even when they never hired the broker. That said, the fee has not vanished from the market. It has often been folded into higher monthly rent instead, so you are frequently still paying it, just spread out over the lease.
Did the FARE Act actually make renting cheaper in NYC?
It made renting cheaper to start, not necessarily cheaper overall. Upfront move-in costs dropped sharply, by some estimates from around $13,000 to roughly $7,500, and leasing activity rose for months as more renters could afford to commit. But many landlords rebuilt the fee into the rent. In Park Slope, average rent climbed from roughly $5,200 to over $6,000 within a year. If you stay long enough, those higher monthly payments can add up to more than the old one-time fee would have cost you. The honest answer is that it depends almost entirely on how long you stay.
How much are move-in costs in NYC now?
Average upfront move-in costs fell from roughly $13,000 to about $7,500 after the FARE Act, which is real, immediate relief on day one. That figure typically covers first month’s rent and a security deposit rather than a large broker fee on top. The tradeoff is that the monthly number is often higher than it would have been before, because the fee got absorbed into rent. So budget less cash to get in the door, but run the math on the full lease term before you assume you are saving money.
Should I rent in NYC now that broker fees are banned?
Weigh how long you plan to stay, because upfront savings and long-term cost are very different things. If you are moving frequently or are short on cash right now, the lower move-in cost is a genuine win. If you plan to stay put for several years, a rent that absorbed the old broker fee can quietly cost you more than the one-time fee ever did. And if you are staying long term, it is worth checking whether buying pencils out better. You can run your own numbers with the free NYC rent vs buy calculator, or reach out and I will walk you through it.
Watch on YouTube: https://youtube.com/shorts/0EoikB84Zm4
Daily Tesla News is your daily dose of NYC real estate news that actually matters. Covering Staten Island and Brooklyn markets, policy changes, and homeowner tips.
Brought to you by Joseph Ranola, 65+ 5-star Google reviewed real estate agent covering Staten Island and Brooklyn.
Have questions about this topic or any episode? Try the DTN AI chatbot, it knows every episode we have ever done.
