How Rents, Renewals, and Market Dynamics Shifted Post-FARE Act
This summer marked a turning point for New York City renters. On June 11, the FARE Act went into effect, putting an end to forced broker fees and reshaping the economics of apartment hunting overnight. At Openigloo, we analyzed how this policy change impacted rents, lease renewals, and inventory during Summer 2025 (June 1-Aug 31).
Our analysis combines survey responses from over 5,200 market-rate NYC renters, alongside tens of thousands of active listings across New York City.
Report Snapshot
- FARE Act has contributed to a 6% increase in summer rents – still a significant savings to the 8-15% fees renters are used to paying.
- Summer renewal rates have taken a hit, dropping to 59% in 2025 from 69% in 2024 – suggesting renters felt empowered to move without the additional overhead of a broker fee.
- Advertised inventory dropped dramatically after the FARE Act passed only to rebound by mid-July, suggesting the activity was a brief market-adjustment not a permanent reality.
Did Rents Rise to Offset Broker Fees?
A big concern before the FARE Act was that landlords would simply bake broker fees into the rent. Our data shows that while some of that cost has shifted into monthly rent on market-rate apartments (~6%), renters are still coming out ahead compared to the 8–15% broker fees they used to pay upfront. It’s also worth noting that this summer’s rent growth could be about more than just the FARE Act. Good Cause Eviction and other market dynamics are in play. And because this analysis only looks at market-rate units, not stabilized ones, the overall impact on citywide rents is likely smaller than what we’re showing here.
| Year | Apr 11-Jun 10 | Jun 11-Aug 27 | % Rent Increase |
|---|---|---|---|
| 2023 | $3,250 | $3,520 | 8.3% |
| 2024 | $3,500 | $3,800 | 8.6% |
| 2025 | $3,600 | $4,125 | 14.6% |
Renewal Behavior: A Big Drop
Renewals took a hit this summer. Rates dropped from 69% in 2024 to 59% in 2025. This is a sign that once broker fees disappeared, more renters felt free to shop around rather than stay put. Across price points, renewal rates varied, with the biggest shift in the highest price range. There were minimal drops in
renewal rates for apartments priced below $3,100.
Inventory & Days on Market
When the FARE Act took effect, listing inventory dipped dramatically as the market adjusted. Overnight, advertised open listings dropped by nearly 75%. But by mid July, supply not only bounced back but nearly doubled the pre-FARE Act levels. At the same time, apartments were moving faster: the median time on market dropped from 39 days to 23 days after the FARE Act.
Far from freezing activity, the policy seems to have accelerated it. Renters had more choice, less upfront costs, and confidence to enter the rental market in what is usually a competitive season.
| Period | 25th %ile | Median | 75th %ile |
|---|---|---|---|
| Pre-FARE Act | 17.3 days | 39 days | 42 days |
| Post-FARE Act | 16 days | 23 days | 24 days |
Conclusion
Despite stark warnings from various groups it seems that the FARE Act didn’t break NYC renting but rather reshaped it. While rents did climb, the increases were modest compared to the savings on forced broker fees. Renewal rates dropped as renters gained mobility and leverage, and listings moved faster – all signs of a more dynamic market.