Previously, renters of NYC housing often had to cough up 10–15% of annual rent, which is thousands of dollars, to sign a lease|Norbert Nage|CC BY-SA 3.0

New York renters scored a major victory on Wednesday as the Fairness in Apartment Rental Expenses (FARE) Act took effect, shifting the burden of broker fees from tenants to landlords. 

The Real Estate Board of New York attempted to block the measure but failed.

The FARE Act could reduce moving costs by an estimated 42%, according to StreetEasy. Previously, renters often paid brokers 10–15% of annual rent—amounting to thousands of dollars—to secure leases. 

Now, landlords must cover that cost, offering potential relief, especially for low-income and younger renters.

However, critics of the law warn it could lead to a significant rent spike in NYC as property owners would seek to offset broker fees. Some say the initial rent hikes may taper off over time.

Despite this reform, affordability remains a challenge. The median rent for a two-bedroom apartment in New York City is now $5,560, up 17.5% from last year, reinforcing its status as one of the most expensive rental markets in the US.