New York City’s rental market saw an unexpected cooldown this summer in the wake of the Fairness in Apartment Rental Expenses (FARE) Act. But according to data from the Real Estate Board of New York (REBNY) and StreetEasy, the policy’s impact has been mixed: listings are being withdrawn, inventory is tightening and rents aren’t falling as many had anticipated.
Inventory tightens
Since the FARE Act took effect, rental listings in New York City have dropped sharply, by 16%, 23% and 29% in June, July and August, respectively. The data suggests that brokers are pulling listings in an effort to maintain profits after the new rules cut into their margins. According to the Real Estate Board of New York (REBNY), new rental listings fell 74% between June 11 and July 31 compared to the same period in 2024. The steepest declines were recorded in Manhattan, followed by significant drops in Brooklyn, two markets known for their heavy broker representation.
With inventory plunging over the past three months, one question lingers: is the FARE Act achieving its intended purpose, or is this simply a temporary market adjustment as brokers adapt to the new regulations?
Rent climbing continues
As inventory continues to tighten, rents have climbed higher across the city. According to StreetEasy, the median rent in July reached $3,678, up 7% from 2024 levels citywide. The trend was consistent across boroughs, with Manhattan seeing the largest jump. Landlords appear to be raising rents to offset new costs imposed by the FARE Act, pushing prices higher even as available listings dwindle. Apartments that previously included broker fees have seen the sharpest rent increases, suggesting this is becoming a broader pattern rather than an exception.
There’s little doubt that these costs are being passed down to renters. The question now is when, if ever, the market will stabilize. Will rents eventually fall as brokers adapt, or will profit margins continue to take priority over affordability?
A new market
While the FARE Act was intended to ease upfront costs for renters, early data suggests it has instead added new layers of complexity to New York City’s rental market. Brokers and landlords are adjusting to new compliance requirements, while tenants continue to face record-high rents and shrinking supply. Not all boroughs are feeling the squeeze, however, Queens and parts of Brooklyn have seen modest increases in inventory with stable rent prices, indicating the strain is concentrated in areas with higher broker activity.
For now, industry experts remain divided on how long this disruption will last. Some predict the adjustment period could extend into early 2026, while others believe the law may ultimately steer the market toward greater transparency and long-term fairness.
