7 minutes read time.
New York City’s rental market is undergoing a transformative shift. With the emergence of “no broker fee” apartments, renters can look forward to a landscape that—on the surface—appears to lower upfront costs and simplify the leasing process. However, as with any major market change, the story is more complex. In 2025, both federal policies and local government actions are playing significant roles in shaping these trends, with impacts felt by renters, landlords, and brokers alike.
The Rise of No Broker Fee Apartments
For decades, New York City has been notorious for its high upfront rental costs. Renters often pay broker fees that can total up to 15% of the annual rent—adding thousands of dollars to the expense of moving. In contrast, many other major U.S. cities already have systems in place where landlords shoulder these fees.
Recent coverage by Reuters highlights how New York City has eliminated tenant-paid broker fees, reinforcing a shift toward a more renter-friendly market.
Now, with the advent of “no broker fee” apartments, NYC is finally aligning with national norms. Platforms like ours are capitalizing on this change by exclusively listing apartments that relieve renters of the broker fee burden. This model not only cuts down on initial expenses completely but also appeals to a generation of renters seeking transparency and streamlined experiences.
Local Government Measures: The FARE Act
At the heart of this transformation is the recently passed Fairness in Apartment Rentals Act (FARE Act). Approved by the City Council with a 42–8 vote, the act mandates that landlords—not tenants—must pay the broker fees for apartment rentals. Set to take effect in 180 days, the FARE Act is designed to reduce the high upfront costs that have long burdened New Yorkers.
Key points of the FARE Act include:
- Fee Shift: Landlords hiring brokers to list their properties will now cover the associated fees.
- Transparent Disclosures: Rental listings and agreements must clearly disclose any fees that tenants might incur.
- Enforcement: Non-compliance carries civil penalties, ensuring that landlords adhere to the new guidelines.
Supporters, including many tenant advocates and progressive council members, argue that this measure is a “commonsense element of fairness” that will make housing more accessible. Critics, however, caution that while the immediate financial burden on renters may decrease, landlords might compensate by increasing monthly rents – something you don’t have to worry about with us on ZeroCommHomes as we list broker-less apartments only, that is, no fee paid in the beginning or later in the rent.
Additionally, industry groups like the Real Estate Board of New York (REBNY) have already initiated lawsuits claiming that the act could infringe on constitutional rights and contractual norms. And while the elimination of broker fees is still widely seen as a victory for renters, some major investors are expressing concerns about the broader direction of New York City’s real estate market. Recently, long respected real estate mogul Grant Cardone announced that his firm, for instance, would cease all underwriting on NYC properties, citing increasing financial and legal uncertainties (Inman Report). He pointed to recent policy shifts and legal rulings as factors that could discourage investment in the city, potentially shifting capital toward states with fewer regulatory risks .
For a comprehensive overview of the act and its potential implications, check out this AP report on the FARE Act.
Federal Policy Effects: A New Administration’s Role
While local measures like the FARE Act are creating immediate changes, federal policies under the new administration are also influencing the NYC real estate market. Key federal actions impacting the market include:
- Economic Stimulus & Interest Rates: The new administration is pursuing policies aimed at stimulating economic growth. With potential adjustments to interest rate policies, mortgage rates are projected to remain relatively stable around the mid-6% range—an environment that supports both buying and renting activities. (According to the latest forecasts from Fannie Mae, mortgage rates are expected to stabilize around the mid-6% range, supporting continued market activity.)
- Tax Reforms: Proposed tax incentives and changes to deductions (such as adjustments to the SALT cap) may boost investment in real estate, leading to increased capital inflow. This, in turn, could improve overall market liquidity and encourage development projects, including office-to-residential conversions (The trend of converting office spaces to apartments is gaining momentum, as detailed in this recent New York Post article on office-to-apartment conversions).
- Regulatory Easing: There are expectations of a more business-friendly federal stance, which might streamline financing for large projects. This approach has already been observed in initiatives aimed at repurposing obsolete office spaces into residential units, increasing the available housing inventory.
Together, these federal policies create a backdrop of cautious optimism. They offer both opportunities and challenges. On the one hand, a supportive federal climate could enhance market stability and encourage further innovation in housing supply. On the other, increased investments may eventually lead to upward pressure on rents—a concern that echoes some of the critiques of the FARE Act.
Market Reactions: Balancing Benefits & Concerns
Benefits for Renters:
- Lower Upfront Costs: By eliminating mandatory broker fees, renters can save thousands of dollars at the time of lease signing.
- Increased Transparency: With required fee disclosures, tenants can make better-informed decisions.
Potential Challenges:
- Rent Increases: Landlords might offset the cost of paying broker fees by raising base rents.
- Reduced Listing Visibility: Critics warn that if brokers are restricted from posting open listings online without a formal landlord agreement, the overall pool of available apartments may shrink.
- Legal Uncertainties: Ongoing lawsuits by industry groups could delay or modify the act’s implementation, adding an element of uncertainty to the market.
Politically, the debate over these changes cuts across ideological lines. Progressive voices emphasize fairness and affordability, while industry advocates and some fiscal conservatives worry about unintended market distortions. Despite these differences, most agree that at the very least transparency practices are long overdue.
Platforms focused on no broker fee apartments provide a curated experience that can simplify the apartment hunt and keep the rental prices down the whole time.
What It Means for ZeroCommHomes and the Future of NYC Rentals
For startups like ZeroCommHomes, the current market changes present a significant opportunity. By focusing on no broker fee apartments, ZeroCommHomes can address a key pain point for renters. The platform’s user-friendly interface and commitment to transparency not only position it as a competitive listing service but also as a trusted resource for renters navigating an evolving market.
Looking ahead, successful platforms will likely combine technology with an in-depth understanding of both local policies and broader economic trends. Whether you’re a renter seeking to save on upfront costs or a landlord trying to balance market competitiveness with new regulatory burdens, staying informed is crucial.
Conclusion
The NYC real estate market in 2025 is at a crossroads. With the FARE Act set to shift broker fee responsibilities to landlords and federal policies fostering an environment of economic stimulus, the market is poised for both promise and potential pitfalls. Renters stand to benefit from reduced initial expenses and greater transparency, but they must remain vigilant as landlords adjust their pricing strategies – does not apply for ZeroCommHomes, as there are never any brokers anyway. For industry stakeholders—and for startups like us—the coming year offers both challenges and exciting opportunities to redefine the rental landscape in one of the world’s most dynamic cities.
For additional insights into the overall housing landscape, readers can explore the latest trends in the NYC Housing Market Report Prediction from Forbes.
