Since it became law, New York City’s Fairness in Apartment Rental Expenses (FARE) Act has promised to make renting more affordable — and early signs show it may be delivering.
While some realtors initially pushed back against the elimination of broker fees, renters appear to be the biggest winners so far.
A summer analysis by Openigloo, covering June 1 to August 31 and focusing only on market-rate apartments (around 5,200 units), revealed that rents ticked up by 6%. But because broker fees — usually 8% to 15% of the monthly rent — were removed, tenants still netted significant savings.
More Freedom for Renters
FARE has also shifted the balance of power. Openigloo found that summer lease renewals dropped 10% year-over-year to 69%, suggesting that renters feel freer to shop around.
“Once broker fees disappeared, more renters felt free to explore options rather than automatically renew,” the report noted.
Interestingly, the initial rollout in June caused a 75% plunge in advertised open listings. But that dip was short-lived.
By July, available units nearly doubled compared with pre-FARE levels, and the median time listings stayed on the market fell by 39 days — down to just 23.
“Far from freezing the market, the policy seems to have accelerated activity,” Openigloo said. “Renters now have more choice, lower upfront costs, and greater confidence to enter the market during the competitive summer season.”
Did Landlords Push Fees Into Rents?
Some in real estate worried that landlords might simply bake the broker fees into rents. Early data shows a temporary spike: Manhattan rents jumped 15.7% from June 11 to June 23, according to UrbanDigs. However, this increase appears to have been short-lived.
Overall, Openigloo concluded that the FARE Act has created a “more dynamic” rental market — one where renters enjoy more flexibility and choice than before.
Eyes on the November Mayoral Election
Looking ahead, landlords and renters alike will be watching New York City’s Mayoral Election in November. Democratic front-runner Zohran Mamdani has campaigned on imposing a rent freeze on stabilized units, a move that could further reshape Gotham’s housing landscape.
With less than two months to go, the stakes are high for tenants, landlords, and the future of NYC’s rental market.
Author Profile
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The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.
He also writes humorous articles about real estate, investors, and realtors.
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