Apartment hunters in NYC are breathing a sigh of relief now that the FARE Act is officially in effect.
The contentious legislation from Councilmember Chi Ossé shifts the responsibility of the broker fee to the hiring party rather than the renter. Needless to say, it’s a game-changer in a market where rental prices are breaking records.
Although the law is only a few weeks old, those on a quest for a new place are already starting to see its effects. Is there a possible downside to this shift?
FARE Act is in effect — what’s next for rent?
According to John Walkup, co-founder of real estate analytics company, UrbanDigs, NYC has had a “sharp reaction” to the law, citing that rental listings have dropped likely because landlords appear to have paused or reconsidered how to price and market their units.
However, there are some other findings that might not necessarily be in a renter’s favor.
“At the same time, the median asking rent for new listings jumped quickly, rising nearly 15% in the first week following the FARE Act,” he tells Secret NYC. “While it is still too early to say whether this trend will continue, it suggests that landlords may be attempting to incorporate broker fees into the rent, which would transfer the cost to renters in a less direct, but very real way.”
Representatives from StreetEasy insist it’s a bit too soon to analyze which way the rental trends will go, and whether or not this 15% increase will remain consistent or — perish the thought — rise. Regardless of what is in store, the real estate company says it will remain dedicated to making housing more accessible in the city.
“The FARE Act has modernized the rental process to finally bring our city in line with nearly every other city in the country, removing an unnecessary barrier to provide immediate financial relief to renters and make it easier for them to understand what they can afford,” Caroline Burton, General Manager at StreetEasy and Zillow VP, said in a statement.
She continued, “But the work does not stop here. StreetEasy and Zillow remain dedicated to supporting measures that address housing access and affordability so that we can improve the system for everyone – renters, agents, and property managers.”
As soon as we learn more about the housing trends as a result of the FARE Act, you’ll be the first to know. In the meantime, why not explore tools like NYC’s first-ever rent stabilized alert tool or explore our experts’ guide to winning a NYC affordable housing lottery.