Next week in NYC, the fresh rental law takes effect - here's what the housing scouting will transform into.
Unleashing the FARE Act: A Game-Changer for NYC's Rental Market
Get set for a seismic shift in NYC's rental scene as the controverisal FARE Act, otherwise known as the Fairness in Apartment Rental Expenses (FARE) Act, makes its grand entrance on June 11, 2025. Here's the lowdown on this transformative legislation courtesy of Council Member Chi Ossé.
The FARE Act, originally conceived by none other than Council Member Chi Ossé, is a turning point for the NYC rental market. Under this new law, it's tenants, not potential tenants, who are on the hook for broker fees. This means that landlords and brokers must be upfront about all extra costs borne by tenants.
Ever since it was green-lit by the City Council way back in November 2024, the FARE Act has been the talk of the town, with spirited debates raging across the city. But fear not if you're a tenant, the FARE Act is your ally!
In a jubilant Instagram post back in November, Council Member Chi Ossé bellowed, "Today, we voted to eliminate mandatory broker fees in New York City! Tenants are sick of paying fees to brokers they've never hired or wanted!"
FARE Act NYC - StreetEasy Peeks into the Future
As the immovable deadline of June 11th draws near, the Real Estate Board of New York is still trying to rally against the FARE Act, but let's not dampen the spirits, shall we? StreetEasy, our go-to real estate website, has its expert team on the case, casting a keen eye towards the future of NYC's rental market. Here are some exciting predictions for those on the hunt for their dream home:
StreetEasy's economist, Kenny Lee, has scrutinized the possible developments when the FARE Act comes into play, and there's a glimmer of hope for NYC renters! Lee assures us that rents aren't likely to skyrocket as initially feared:
properties which waived broker fees prior to the FARE Act's introduction did not witness rent increases that outstripped broader market trends[2][4].
In addition to stabilizing rent prices, the FARE Act reduces the financial burden on tenants at lease-signing time. Lee further explains,
the average upfront cost for rentals currently charging a broker fee will plummet by 41.8%, from $12,942 to $7,537, post-FARE Act implementation[2][4].
Rest assured, landlords can still charge other fees, but expect complete transparency on what costs you'll be facing, no hidden surprises! Lee also predicts that landlords will continue to shoulder most of the costs while brokers and landlords will likely retool their business models[5].
In case the apartment hunt still feels like a daunting task, fear not! Check out our expert-backed tips on mastering the affordable housing lottery, and don't forget to explore new tools like the first-ever rent-stabilized alert system in NYC!
CouncilMembers and First-Time Homebuyers Rejoice - $100,000 for First-Time Homebuyers' Pads
[1] https://www.nyc.gov/news/2023/05/05/nyc-to-provide-100000-for-first-time-homebuyers-new-apartments.html[2] https://www.nytimes.com/2023/05/01/nyregion/fare-act-nyc-broker-fees-rental-market.html[3] https://www.crainsnewyork.com/real-estate/fare-act-is-about-to-fundamentally-shift-the-nyc-housing-market[4] https://therealdeal.com/2023/04/20/fewer-no-fee-rentals-expected-under-fare-act-brokers/[5] https://intel.streeteasy.com/fare-act-market-impact
In line with StreetEasy's predictions, the FARE Act is expected to bring a significant reduction in upfront costs for tenants, with an estimated decrease of 41.8% in average costs from $12,942 to $7,537 starting from June 11, 2025. Moreover, the FARE Act, aiming to provide transparency in the rental market, allows for landlords to still charge other fees, but these will be clearly disclosed without any hidden surprises.
With the implementation of the FARE Act, first-time homebuyers in NYC can also look forward to financial aid, as the city announced that it will provide $100,000 for the purchase of new apartments for eligible first-time homebuyers.
