New York City Council Votes to Ban Broker Fees for Renters

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Broker Fees for Renters

In a landmark decision, the New York City Council has voted to ban the practice of forcing tenants to pay broker fees, a long-standing and controversial feature of the city’s rental market. Under the new legislation passed Wednesday, landlords will no longer be able to require tenants to cover broker fees for brokers they hire—a cost that could run as high as 15% of annual rent, or about $7,000 for the average apartment.

The bill, known as the FARE Act, aims to relieve renters from paying hefty upfront broker fees for services they don’t directly benefit from. Supporters argue it’s a win for tenants in a city where two-thirds of residents rent their homes. “Enough with these injustices,” said Councilmember Chi Ossé, who sponsored the bill against broker fees.

Despite fierce opposition from real estate groups, including a massive lobbying campaign focused on maintaining broker fees, the legislation passed by a veto-proof margin of 42 to 8. Brokers warn that the elimination of broker fees could push landlords to raise rents, but many tenants view that as preferable to paying high broker fees.

With the law set to take effect in six months, New York is set to become the first major city to end the mandatory practice of broker fees paid by tenants. Mayor Eric Adams has expressed concerns about potential fallout from eliminating broker fees, but supporters say this is a much-needed reform. Many believe that removing broker fees will make renting more accessible and affordable for New Yorkers.

As landlords and real estate professionals adjust to the upcoming ban on broker fees, there is growing discussion about how this change will reshape New York’s rental market. While some anticipate rent increases to offset the loss of broker fees, others believe the rental market could become more transparent without broker fees adding to upfront costs. Tenants across the city are welcoming the shift, viewing it as a fairer approach to apartment hunting in a notoriously expensive city.

This historic decision marks a significant shift in housing policy, signaling a new era in which tenants may no longer bear the burden of broker fees.

Source: Link

Post-Election Surge in Moving Plans

A new survey reveals that nearly one in five Americans are more likely to move now that the election is over. The Redfin-commissioned survey, conducted by Ipsos, found that 22% of U.S. residents say they’re considering relocating, with over a third of them thinking about moving to another country and 26% eyeing a different state.

Among younger people, renters, and those with lower incomes, the likelihood of moving has increased. Thirty-four percent of people aged 18-34 said they are more likely to move post-election, compared to just 9% of those over 55.

The survey also highlighted the impact on housing decisions. About 17% of those planning to move say the election has made them more likely to buy a home, while 12% are considering selling.

Interestingly, the survey revealed party divides, with Democrats more likely than Republicans to consider moving abroad. While one-quarter of all respondents said they’re less likely to move, the results underscore how political events are influencing people’s plans for the future.

Source: Link

U.S. Jobless Claims Fall, Market Steady

And finally, U.S. jobless claims dropped last week, signaling that the labor market remains resilient despite a slowdown in job growth in October. The Labor Department reported that initial claims for unemployment benefits fell by 4,000, to a seasonally adjusted 217,000 for the week ending November 9th. This was better than the 223,000 claims economists had forecasted.

While claims surged earlier in October due to disruptions from hurricanes and a Boeing workers’ strike, layoffs have remained historically low, supporting the broader economy. Chief economist Lou Crandall noted that, despite signs of softness in the labor market, the unemployment insurance data continues to reflect strength.

In another positive sign, the number of people receiving ongoing benefits dropped by 11,000 to 1.87 million, likely due to the end of Boeing’s furloughs and fewer disruptions from the hurricanes. Economists remain hopeful that job growth will pick up again in November.

This easing of labor market conditions is expected to influence the Federal Reserve’s decision to cut interest rates again next month, despite inflation slowing more gradually than anticipated.

Source: Link

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