Why NYC Rents Jumped Overnight

The new law that went into effect that dramatically reshaped New York City’s rental market.

A new law went into effect that dramatically reshaped New York City’s rental market. The legislation prohibits tenants from paying broker commissions, shifting that cost to landlords. Then the landlords immediately adjusted asking rents to cover this new expense. The result: rents appeared to spike suddenly, even though the increase reflects the cost of broker commissions now being baked directly into the advertised price

The takeaway is simple: policies that sound consumer friendly can have unintended consequences when rushed or poorly designed. This is another reason it is essential to work with an informed, ethical real estate agent who understands both the written rules and the unwritten realities of the market. Understanding changes in the rental laws is essential for navigating the NYC market. If you want clarity on how the FARE Act affects your rent, your renewal, or your next move, I’m here to help you make informed, confident decisions.

Here are a few important points to keep in mind:

The new law was designed to bring housing costs down.
The goal is admirable, but the practical outcomes tell a more complicated story.
After the first or second year, when the lease renews, the higher rent continues.
In other words, tenants ultimately pay more over time because the commission is permanently embedded into the rent.
The FARE Act was passed in June 2025, just months before an election dominated by conversations about affordability.For legislation positioned as a solution to rising housing costs, the outcome looks more like a FARE hike and, arguably, unFAIR to renters. Whether this was accidental or intentional is open to interpretation.