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New York renters will save big on moving costs starting today

The High Cost of Moving in NYC

Author

Ark
June 14, 2025

New York City’s rental market is notoriously competitive, with a vacancy rate hovering around 1.4%, one of the lowest in the nation. For renters, securing an apartment often comes with a staggering upfront cost. Consider a modest $2,000-a-month apartment. To move in, a tenant typically pays:

  • First month’s rent: $2,000

  • Security deposit: $2,000 (capped at one month’s rent under 2019 tenant protection laws)

  • Broker fee: Up to 15% of the annual rent ($24,000), which equals $3,600

That’s a total of $7,600 just to walk through the door—a figure that can balloon to $10,000 or more for pricier units. In 2023, StreetEasy reported that the average upfront cost of moving in NYC was $12,951, with broker fees accounting for thousands of dollars. For many, especially young professionals, students, or low-income renters, these costs create a significant barrier to mobility, locking them out of new opportunities or forcing them to stay in less desirable living situations.

The FARE Act, championed by Councilmember Chi Ossé (D-Brooklyn), aims to alleviate this burden. By mandating that the party who hires the broker pays the fee, the law shifts the responsibility to landlords or property managers in most cases. This change aligns NYC with the vast majority of U.S. cities, where tenants are not expected to pay for a landlord’s broker. “After too many decades under an unfair and suffocating system, New Yorkers can be free from the forced broker fee once this new law takes effect,” Ossé declared in a statement.

How the FARE Act Works

The FARE Act, officially known as Introduction 360-A, was passed by the City Council on November 13, 2024, and became law on December 13 after Mayor Eric Adams neither signed nor vetoed it. The legislation takes effect 180 days later, on June 11, 2025, and applies to all new lease agreements signed on or after that date. Key provisions include:

  • Broker Fee Responsibility: Landlords or property managers who hire a broker to list or market a rental property must pay the broker’s fee. This applies even to brokers who post listings online (e.g., on StreetEasy or Zillow) with the landlord’s permission, regardless of a formal agreement.

  • Tenant Choice: Tenants who hire their own broker (a “tenant’s agent”) to search for properties or negotiate leases are responsible for that broker’s fee. Dual agents, representing both landlord and tenant with consent, may also charge tenants, but landlords cannot require tenants to use a specific broker as a condition of renting.

  • Fee Disclosure: Landlords and brokers must clearly disclose all tenant-paid fees (one-time and recurring) in listings and rental agreements. Before signing a lease, tenants must receive an itemized written disclosure of any fees, which they must sign and retain.

  • Enforcement: The Department of Consumer and Worker Protection (DCWP) oversees enforcement. Violators face fines starting at $750 for a first offense, $1,800 for a second, and $2,000 for subsequent violations. The New York Department of State can impose additional penalties, including up to $2,000 and potential license revocation for brokers. Tenants can report violations by calling 311 or filing a complaint with the Department of State.

StreetEasy and Zillow, major players in NYC’s rental market, have pledged to support the FARE Act by requiring all listings to disclose fees starting June 11. The “no-fee” filter on StreetEasy will be removed, as the law effectively eliminates tenant-paid broker fees for landlord-hired brokers.

A Victory for Renters

For NYC’s 2.2 million renter households—two-thirds of the city’s population—the FARE Act is a game-changer. The law is expected to reduce upfront moving costs by 41.8%, from $12,951 to approximately $7,537 for apartments with broker fees, according to StreetEasy estimates. This reduction could unlock mobility for tens of thousands of renters, making it easier to relocate for jobs, family, or better living conditions.

Felipe Idrovo, a Queens renter and member of Make the Road New York, shared his experience: “I realized that the burden of the broker’s fee was taking away the little money I had to make that move. Now that the measure has passed, I feel like I have more freedom to look for an apartment in my price range.”

The FARE Act has garnered widespread support from tenants, advocacy groups, and even Governor Kathy Hochul, who highlighted its alignment with her efforts to address NYC’s housing crisis. In April 2025, Hochul and Ossé released a video affirming the law’s importance, with the state filing an amicus brief to defend it against legal challenges. “New Yorkers deserve a fair chance at affordable housing, and the FARE Act advances that critical goal,” Hochul said.

Social media has played a significant role in rallying support, particularly among younger renters. Ossé, the only Gen Z member of the City Council, leveraged platforms like TikTok to galvanize public pressure, encouraging New Yorkers to call their council members and attend hearings. “The NYC broker fee system is broken. It’s confusing, costly, and unfair,” he posted on X in February 2024. Influencers and housing advocates shared stories of paying thousands for minimal broker services, amplifying the call for reform.

The Real Estate Industry’s Pushback

Despite its popularity among renters, the FARE Act has faced fierce opposition from the real estate industry, led by the Real Estate Board of New York (REBNY). In December 2024, REBNY, along with several brokerages and the New York State Association of Realtors, filed a federal lawsuit to block the law, arguing it violates brokers’ First Amendment rights to free commercial speech, oversteps state law, and breaches the Contracts Clause by voiding existing agreements. In January 2025, REBNY sought a preliminary injunction, but two legal experts have suggested the lawsuit is unlikely to succeed, especially with the state’s support.

REBNY and landlords contend that the FARE Act will lead to higher monthly rents as property owners pass broker fees onto tenants indirectly. “The FARE Act will make it harder for tenants to find housing, raise rents, and make the hard work of real estate agents even more difficult,” said REBNY president James Whelan. Historical data supports this concern: “no-fee” apartments in NYC often command 3–12% higher rents than those with broker fees.

One landlord in Clinton Hill cited by NBC New York illustrates this trend. A one-bedroom apartment previously rented for $3,200 now lists for $3,600—an 11% increase—explicitly to offset the cost of paying the broker fee. However, a StreetEasy report offers a more nuanced perspective. In April 2025, properties that voluntarily dropped broker fees saw an average annual rent growth of 5.3%, slightly above the 4.6% growth for the broader market. If this trend holds, a $3,550 apartment might increase to $3,600—a modest hike compared to the thousands saved in upfront fees.

Brokers also argue that their services extend beyond “opening doors.” Jordan Silver of Brown Harris Stevens emphasized that brokers conduct background checks, manage viewings, and handle tenant-landlord interactions, providing ongoing value. “This is the start of a top-down, government-controlled housing system,” Silver warned, criticizing the law’s vague language. Stephanie Tiboris, a broker with 15 years of experience, noted that she handles tenant complaints and negotiates rent increases, justifying the fee as part of a comprehensive service.

Will Rents Really Skyrocket?

The debate over rent increases hinges on market dynamics. Ossé and supporters argue that rents are determined by supply and demand, not landlords’ whims. “If your landlord could increase your rent tomorrow, they would have done so yesterday. They’re not holding back,” Ossé said. Nearly 47% of NYC apartments are rent-stabilized, meaning landlords cannot legally “bake” broker fees into rent for those units. Even for market-rate apartments, listing a unit significantly above market value—say, $400 over for a Clinton Hill one-bedroom—could deter tenants in a competitive market, leaving properties vacant longer.

StreetEasy’s data aligns with this view, suggesting that rent increases may be modest and absorbed by market demand. The platform’s analysis found no evidence that rents will rise beyond normal market trends due to the FARE Act. Moreover, about 57.5% of StreetEasy listings in March 2025 were already “no-fee,” indicating that many landlords already cover broker fees without drastically hiking rents.

However, in high-demand neighborhoods or during peak summer rental season, landlords may have more leverage to raise rents. The FARE Act’s success will depend on enforcement and tenant vigilance. “There needs to be an enforcement arm,” said Jordan Melkin, an agent at Pepe Real Estate who supports the law. “Hopefully, tenants will have the confidence to say they shouldn’t be forced to pay for this.”

What’s Next for NYC Renters?

As June 11 approaches, renters should prepare for a transitional period. The rental process will remain largely the same—tenants will browse platforms like StreetEasy, contact listing agents, and view apartments—but they must verify whether a broker represents the landlord or themselves to avoid unexpected fees. Landlords may experiment with rent adjustments, but market forces and tenant pushback could limit significant increases.

For mobility programs and corporate relocations, the FARE Act could yield significant savings. Companies that previously reimbursed broker fees as a taxable benefit may see reduced costs, benefiting both employees and budgets.

The FARE Act is part of a broader push to address NYC’s housing crisis. Governor Hochul’s FY25 budget includes $500 million for 15,000 new homes on state-owned land and $600 million for housing developments statewide, complementing the city’s “City of Yes for Housing Opportunity” zoning plan to create 80,000 new homes. These efforts aim to increase supply and ease pressure on rents, which could mitigate any FARE Act-related increases.

A New Era for NYC Renting

The FARE Act marks a turning point for NYC’s rental market, promising greater fairness and affordability for tenants. By eliminating tenant-paid broker fees, the law removes a significant financial hurdle, aligning NYC with national norms. While the real estate industry warns of higher rents, data suggests increases may be modest, and market forces will play a critical role in shaping outcomes.

As Councilmember Ossé put it, “The era of the captive tenant may finally be over.” For renters like Felipe Idrovo, the FARE Act offers hope and opportunity in a city where housing affordability remains a daily struggle. As New Yorkers navigate this new landscape, the law’s impact will depend on robust enforcement, informed tenants, and a market that balances fairness with economic realities.

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