NYC’s FARE Act Sparks Rent Increases in Luxury Sector, Says MNS CEO
NYC’s FARE Act Sparks Rent Increases in Luxury Sector, Says MNS CEO
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July 8, 2025 | New York City
The FARE Act, intended to ease the burden of broker fees on renters, is instead pushing luxury apartment rents even higher, according to MNS Real Estate CEO Andrew Barrocas. Since the law took effect last month, Barrocas reports units that previously rented for $10,000 per month now asking $15,000 — a 50% jump — as landlords pass broker costs back to tenants through increased rents.
Under the law, landlords who hire brokers must now pay their fees, which can reach 15% of annual rent — $18,000 on a $10,000/month lease. Though the law aimed to help lower-income renters, Barrocas says it has rippled through the market, including luxury sectors, as owners adjust pricing to protect margins.
Barrocas pointed to one Upper East Side building that raised rents significantly right after the law took effect. At the same time, data from The Real Deal shows that new Manhattan listings dropped 35% — hitting their lowest levels in over a decade — while median asking rents climbed 16%, to $5,495.
Critics argue that while the FARE Act reduces upfront costs for tenants, it could worsen affordability by reducing inventory and inflating monthly rents. Barrocas added that a broker fee cap may have been a better approach, citing past instances of tenants bidding up fees on below-market apartments. “They basically screwed up the whole market,” he concluded.
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