FARE Act’s first year: Which borough saw the greatest rent spike?

In the year since the New York City Council adopted legislation that altered how brokers got paid, one borough stood out with the starkest change in rent.

Adopted on Nov. 13, 2024, the Fairness in Apartment Rental Expenses (FARE) Act mandates that whoever hires a rental broker is responsible for paying the broker. Opponents of the legislation predicted it would trigger rents to increase as landlords worked to fold these fees into rents.

Citywide, the median rent grew by 8.2 percent in October compared to the same time last year, and the median rent in each borough also increased, according to an analysis by The Real Deal of rental data from listings platform StreetEasy.

But Staten Island’s median rent grew the most, surging by 16.4 percent year over year in October to $3,200 a month, per TRD’s analysis.

Following Staten Island was Manhattan. The median apartment rent in the borough climbed by 8.2 percent during this time, hitting $4,600 a month.

It is not fully clear if the rise in rent was purely because of the legislation or other macroeconomic factors. For instance, more companies have been requiring employees to work in offices, boosting demand.

Additionally, the yearly growth rate for the city and each borough did not peak this year. Over the past decade, New York’s biggest spike in its median rent came in 2022, when it ballooned by nearly 30 percent year over year. That was also Manhattan’s peak year for rent growth, of about 25 percent. Staten Island’s top year was last year, with the median rent growing about 34 percent year over year.

The FARE Act went into effect in June. Supporters have long been trying to prevent tenants from having to pay for landlord-hired brokers, which results in thousands of dollars in extra fees up front. Opponents, such as the Real Estate Board of New York, said the law will not only raise rents but also cause public listings to fall into the shadows. REBNY is challenging the legislation in court.

Another TRD analysis found that on a monthly basis, rental growth was not outstanding. For instance, in June, the citywide median rent increased 2.6 percent compared to the month before and 5.2 percent year over year. The median rent inched up again in July, held flat in August, then ticked down by 0.8 percent in September.

However, inventory — at least publicly available listings — is down. In October, citywide listings fell by nearly 7 percent year over year. This was not the steepest annual plunge, though. That honor went to 2021, when listings plummeted by almost 58 percent compared to the year before.