New York City renters are used to high costs, but 2025 brought a major shift many hoped would ease the pain: the Fairness in Apartment Rental Expenses (FARE) Act. This new law was designed to eliminate the upfront broker fees that tenants have historically had to pay fees that could reach thousands of dollars on top of first month’s rent and security deposits.
But instead of lowering costs, something else happened.
Many landlords simply raised rents to make up for the broker expenses they must now cover. And those higher rent payments stretched over a long tenancy often end up costing renters far more than the old one-time fee.
According to reporting by Greenwich Time, NYC rents jumped almost immediately after the law took effect, surprising tenants who expected savings, not extra charges.
How a “Renter-Friendly” Law Turned Into Higher Monthly Rent
Before the FARE Act, broker fees were one of NYC’s biggest upfront burdens commonly costing tenants between $3,000–$6,000, depending on the apartment.
The FARE Act aimed to fix that by requiring landlords (not tenants) to pay those fees. However, in a competitive housing market where demand still outpaces supply, landlords reacted predictably:
They pushed the costs into monthly rent.
For example:
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A $3,500/month apartment that previously needed a $5,000 broker fee might now list for $3,650/month instead.
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While that seems small, an extra $150/month adds up to $1,800 per year and much more if the tenant stays long-term.
Renters who move frequently might benefit from lower upfront costs, but long-term renters now pay significantly more.
One broker even described the sudden price shift as rentals becoming “more expensive overnight” a reaction directly tied to the new law.
Transparency Was the Goal But Confusion Remains
The FARE Act also requires brokers and landlords to disclose who represents whom and who pays fees. But tenants now face another problem:
“No-Fee” doesn’t really mean cheaper.
Many listings still advertise NO BROKER FEE, which is technically correct but the fee has simply been redistributed into rent.
So while the law aimed to make rental expenses clearer, tenants now face a new kind of hidden cost disguised as higher monthly rent.
Why NYC Renters Aren’t Fleeing to Cheaper Connecticut
The Greenwich Time article also explores whether rising NYC rents are pushing more people into nearby Connecticut markets like Stamford, Norwalk, or Fairfield County.
Surprisingly, the trend is not significant.
Here’s why:
1. NYC occupancy rates remain high
Despite rising costs, demand for NYC apartments is still strong. Many people consider the higher rent worth it for the city’s convenience, job access, and lifestyle.
2. Connecticut isn’t dramatically cheaper
Fairfield County rents have also grown about 2.8% year-over-year. While still more affordable than NYC, it’s not enough of a discount to drive a mass migration.
3. Movers to Connecticut are typically homebuyers, not renters
Brokers report that those leaving NYC for CT tend to be families or professionals looking to purchase homes, not renters reacting to fee changes.
4. Housing development in CT is steady
Connecticut markets remain stable, and new housing developments help keep rent increases moderate but not low enough to trigger large-scale NYC migration.
Who Ultimately Wins Renters or Landlords?
The intention behind the FARE Act was good: reduce the crushing upfront costs of renting in NYC. And in some ways:
Tenants who move every 1–2 years benefit
They avoid large one-time fees and may save money overall.
Renters with limited cash enjoy easier access
Not needing to pay huge upfront fees helps low-income renters secure housing.
However…
Long-term renters could pay thousands more
Higher rent over several years can outweigh any upfront savings.
Market pressure keeps rents rising
Landlords can still increase rent annually, compounding the impact.
Transparency remains an issue
Tenants may not immediately realize that the “no-fee” rent is inflated.
What Renters Should Do Before Signing a Lease
To navigate this new environment, renters should:
1. Ask directly if the rent includes broker compensation
If landlords raised rent to cover fees, it’s important to know.
2. Compare similar units
This helps determine if the rent is artificially inflated.
3. Run a long-term cost analysis
A higher rent of even $100/month equals $6,000 over five years.
4. Don’t rush new disclosure laws give you leverage
Review every document carefully, and ask questions early.
Final Thoughts: A Lesson in Unintended Consequences
The FARE Act is one of several nationwide efforts to make renting fairer, but NYC’s experience shows that market forces adapt quickly.
A policy aimed at protecting tenants ended up creating a new financial strain, especially for long-term renters.
The big message?
Upfront savings don’t always mean long-term affordability.
Renters must now be more vigilant than ever researching listings, comparing rents, and calculating costs beyond the first month.
As NYC continues to evolve, one truth remains: the city’s rental market is complex, emotionally charged, and shaped by both legislation and landlord strategy. And for now, renters will need to stay sharp as “no-fee apartments” take on a whole new meaning.
Source: Greenwich Time “End of broker fees drives up rent in NYC overnight. Will renters leave the city?”
https://www.greenwichtime.com/realestate/article/nyc-broker-fee-rent-ct-apartment-20372362.php