{"id":226815,"date":"2025-09-14T18:55:16","date_gmt":"2025-09-14T18:55:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/226815\/"},"modified":"2025-09-14T18:55:16","modified_gmt":"2025-09-14T18:55:16","slug":"nyc-renters-see-significant-savings-over-nixed-broker-fees","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/226815\/","title":{"rendered":"NYC renters see ‘significant’ savings over nixed broker fees"},"content":{"rendered":"

Big Apple tenants have been saving money on dropped broker fees even though landlords try to bake them into higher rents<\/a> \u2014 but the financial gain won\u2019t last, real-estate experts warn.<\/p>\n

New York City renters saw a \u201csignificant\u201d average savings of roughly $1,300 from the banned fees since the Fairness in Apartment Rentals Act went into effect June 11, according to a study <\/a>published by tenant review platform OpenIgloo on Friday.<\/p>\n

Tenants are still saving big thanks to the city\u2019s new law banning broker fees\u00a0\u2014 but the financial break isn\u2019t expected to last. Paul Martinka<\/p>\n

City rents overall this past summer rose a relative modest 6% above last year\u2019s average for the same period, even as many landlords folded the lost fees into monthly rents, said OpenIgloo CEO Allia Mohamed.<\/p>\n

Landlords used to force tenants to shell out fees of between 8% to 15% of their annual rent to pay brokers linking all the parties up, Mohamed said.<\/p>\n

\u201cWe heard a lot of warnings<\/a> and a little bit of fear over what the FARE Act would be,\u201d Mohamed recently told The Post.\u00a0\u201dRents did increase \u2026 but it\u2019s nowhere close to that 8 to 15% increase that some people were warning of.\u201d<\/p>\n

In a normal summer, rents rise about 8%.<\/p>\n

But some brokers such as Douglas Eliman\u2019s Kelyan Sanai said any savings for tenants will eventually run dry.<\/p>\n

\u201cRight now, [rent] is up [an average of] 6% or more, and we\u2019re talking about one year,\u201d Sanai said, pointing to upwards of 12% increases in swanky Manhattan nabes. \u201cWhat about next year when your rent gets raised 3%?<\/p>\n

\u201cThe question is, do you end up paying more over time? And the answer is yes,\u201d he said.<\/p>\n

New app OpenIgloo, which aims to bring transparency to New York City renting, just issued a report on broker fees. Allia Mohamed<\/p>\n

Higher rent increases have been reported in trendy city neighborhoods. Christopher Sadowski<\/p>\n

Danielle Nazinitsky, founder and CEO of Decode Real Estate, said, \u201cMaybe [renters are] paying less in fees, but their base rent is up, so if they stay a second year, that $1,300 in savings is totally gone.<\/p>\n

She estimated that her clients are paying 10% more in rent increases.<\/p>\n

\u201cI don\u2019t think people are saving\u2019\u2019 from dropped broker fees.<\/p>\n

Meanwhile, the cost of some of the most typical city rentals is soaring.<\/p>\n

The annual cost for the average market-rate one-bedroom apartment in Gotham increased 14.6%, from $3,600 this spring to $4,125 post-June 11, the OpenIgloo report said.<\/p>\n

City Councilman Chi Oss\u00e9 spearheaded the Fairness in Apartment Rental Expenses Act. J.C. Rice<\/p>\n

Even higher increases have been reported in trendy neighborhood such as SoHo, the West Village and East Village, Mohamed said.<\/p>\n

Kenny Lee, a senior economist at StreetEasy, noted that any FARE Act savings is at odds with other factors impacting affordability in the Big Apple rental market.<\/p>\n

\u201cThe rental market has become even more competitive as would-be buyers remain in the rental market amid elevated mortgage rates,\u201d Lee said.<\/p>\n

\u201cIn Manhattan, rental inventory has been falling for more than a year and a half now, and this persistent decline has driven up asking rents.\u201d<\/p>\n

As for spots such as Long Island City in Queens and Crown Heights and Gowanus in Brooklyn \u2014 where housing stock is exploding \u2014 tenants are seeing humbler increases, given landlords are \u201cextremely cautious\u201d of raising rents.<\/p>\n

A top city Realtor said there are \u201cvery few apartments for rent right now\u201d across trendy nabes in Manhattan and Brooklyn. Christopher Sadowski<\/p>\n

\u201cWhat the FARE Act has done is it created a very large incentive for landlords to retain their renters,\u201d Mohamed said.<\/p>\n

But Nazinitsky noted there are still \u201cvery few apartments for rent right now\u201d across the coveted Upper West Side and Upper East Side in Manhattan and Brooklyn Heights and Cobble Hill neighborhoods in Brooklyn.<\/p>\n

\u201cThere\u2019s like 84 rentals in SoHo \u2014 which is also Hudson Square \u2014 but there\u2019s always been over 150,\u201d she said.<\/p>\n

\u201cPeople are scrambling, People are paying over asking price,\u201d she added.<\/p>\n

\u201cMore people are willing to pay a one-month \u2018broker fee\u2019 now to have help.\u201d<\/p>\n

Lee, meanwhile, says renters will have to be more patient to reap any long-term impacts of the FARE Act \u2014 and see the housing supply catch up with demand.<\/p>\n

\u201cHousing cycles take a long time to play out,\u201d he said, \u201cbut we expect that eventually, a lower barrier to moving, thanks to the FARE Act, in combination with increases in new housing supply will lead to a healthier market where more homes become accessible.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Big Apple tenants have been saving money on dropped broker fees even though landlords try to bake them…\n","protected":false},"author":3,"featured_media":226816,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5122],"tags":[5229,5249,5248,405,403,7619,5226,5225,5228,5227,8167,10204,24667,67,586,132,5230,68,1154,2969],"class_list":{"0":"post-226815","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-america","9":"tag-manhattan","10":"tag-metro","11":"tag-new-york","12":"tag-new-york-city","13":"tag-new-york-city-life","14":"tag-newyork","15":"tag-newyorkcity","16":"tag-ny","17":"tag-nyc","18":"tag-rent","19":"tag-residential-real-estate","20":"tag-tenants","21":"tag-united-states","22":"tag-united-states-of-america","23":"tag-unitedstates","24":"tag-unitedstatesofamerica","25":"tag-us","26":"tag-us-news","27":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115204176298441757","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/226815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=226815"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/226815\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/226816"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=226815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=226815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=226815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}