Manhattan Rents Tumble Post-Broker Fee Ban
Immediate Market Response to the FARE Act Implementation As the FARE Act officially took effect on June 11, 2025, Manhattan's rental market experienced immediate and dramatic shifts. This sent shockwaves through the real estate industry. The landmark legislation fundamentally restructured the financial burden of apartment hunting. It mandated that landlords and property management companies absorb broker fees previously shouldered by tenants. Market data revealed immediate volatility. Nearly half of NYC leases historically included tenant-paid broker fees ranging from 12% to 15% of annual rent. The transfer of these substantial costs created an unprecedented disruption in established market practices. These practices had defined Manhattan's rental environment for decades. Properties free from pests are also likely to yield higher values post this market shuffle. Tenant benefits materialized instantly. The average upfront cost of signing a lease plummeted by 41.8%, dropping fro...