Rent Prices Are Up, Inventory Is Down: Did the FARE Act Backfire?

TL;DR

Two months after the FARE Act went into effect, we’re seeing higher rents, tighter inventory, and more frustrated renters. While it’s too soon to definitively blame the law, early data and boots-on-the-ground reality suggest that well-meaning tenant protections may be doing more harm than good. Here’s what we’ve seen so far—and what renters need to watch for next.

• Renters are facing more competition for fewer listings
• Median rent prices in Manhattan and Brooklyn just hit new records
• Brokers now legally need signed agreements before showing properties
• More longtime New Yorkers are reaching out for help than ever before
• Refusing to hire a broker may cost you the best deals

Fast Facts

1. $4,625 — Median Manhattan rent in June 2025, a new record
2. 12.5% drop — Manhattan listing inventory from May to June 2025
3. 17% drop — Northwest Queens inventory over the same period
4. $3,733 — Median Brooklyn rent in June 2025, up from $3,650 in May
5. 2.14% — Manhattan vacancy rate in June 2025, signaling tight supply

Introduction

If you thought the FARE Act would make it easier or cheaper to rent in NYC, early signs point to the opposite. Since the law took effect in mid-June, we’ve seen record-high rent prices, shrinking inventory, and a surge in overwhelmed renters. While it’s too early to pin all of this on the FARE Act, the timing isn’t exactly subtle.

In theory, the law was designed to protect renters from broker fees. In practice, it’s created more red tape, more confusion, and possibly even higher rent. Brokers can’t legally show you properties without a signed agreement. Many renters don’t know this—or don’t want to sign—so they end up locked out of deals they never knew existed.

In this post, we’re breaking down what’s happening on the ground: the data, the trends, and the real impact this law is having on renters, landlords, and the agents caught in the middle.

Rent Keeps Rising, and It’s Not Just Seasonal

The summer rental season is usually competitive, but this year it’s on a different level. In June 2025—just weeks after the FARE Act took effect—median rents in Manhattan hit a record $4,625. Average rents jumped to $5,450. Brooklyn wasn’t far behind, with a median of $3,733.

Could it be seasonal? Sure. But this also marks several consecutive months of record-breaking prices.

• May’s median Manhattan rent was $4,571
• That’s a $54 month-over-month jump
• In Brooklyn, June’s median rent was up $83 from May
• And Queens saw rents dip slightly—but with a 17% drop in listings

It’s too early to say the FARE Act caused this. But a policy designed to make renting cheaper clearly isn’t helping… yet.

Listings Are Vanishing—But Apartments Aren’t

Let’s be clear: apartments don’t just disappear. They get pulled from public sites and go “pocket,” meaning they’re still available—but only if you know the right broker.

Here’s what the data shows:

• Manhattan listing inventory fell 12.5% from May to June
• June 2024 had 9,832 listings vs. 10,265 in June 2025—still higher, but dropping
• Brooklyn stayed flat with around 6,650 listings
• Queens took the biggest hit, dropping nearly 17%

Public inventory is drying up. But it’s not because apartments don’t exist. It’s because landlords and agents are navigating a new legal minefield.

Renter Fatigue Is Real—Even for Longtime New Yorkers

More lifelong New Yorkers are reaching out for help—and that says something. These are people who usually know the game, have gone through the process before, and still can’t figure it out this time around.

Why? Because now:

• You have to sign paperwork before brokers can legally show you options
• The “no-fee” rhetoric has created unrealistic expectations
• Everyone’s competing for the same small slice of publicly listed inventory

It’s no longer just newbies or out-of-towners who are struggling. Even locals are hitting a wall.

Why Brokers Need Agreements—And What Renters Get Wrong

Under the FARE Act, agents representing renters need a signed agreement before they can legally show or even discuss other listings. No agreement, no tour.

Sounds sketchy? It’s not. It’s literally the law.

But here’s where it gets messy:

• Renters think signing an agreement means they’re locked in
• Many don’t realize the agreement protects both sides
• Some assume they’re being scammed, when it’s just compliance
• Others bounce, only to come back weeks later—after missing out

Refusing to sign won’t save you money. It just limits what you can see and delays your search.

Want more on how these agreements work? Read this guide on NYC rental agreements to understand what you’re actually signing.

Misunderstanding the Market Comes at a Cost

Let’s get one thing straight: Google, TikTok, and ChatGPT are not licensed NYC real estate agents. We’ve had investors show up thinking they could buy a condo for $400K based on an AI chatbot.

Here’s what’s happening:

• Online info lacks context and nuance
• Everyone thinks they know more than the pros
• Renters assume brokers are just door-openers

But when you’re up against 30 people at a showing—or a locked apartment with someone inside barricading the door to keep the competition out—you’ll wish you had someone on your side who’s been through it before.

Big Firms Will Win. Small Shops—and Renters—Will Lose.

Here’s the uncomfortable truth: the FARE Act may help big brokerages and landlords the most.

• Big firms have more listings, more agents, and legal departments to handle compliance
• Independent agents and small teams get squeezed by added complexity
• Renters who want “no fee” deals are stuck with limited inventory
• And yes, the very fees the law tried to eliminate are being baked into rent anyway

Instead of removing barriers, the law may just be redistributing them—in ways that leave renters with fewer options and higher prices.

Conclusion

The FARE Act was meant to level the playing field, but so far it’s looking like another blow to renters. Inventory is shrinking, prices are climbing, and even seasoned New Yorkers are struggling to navigate the market. Brokers are now legally required to get signed agreements before showing listings, and renters who resist are missing out on opportunities they didn’t even know existed.

If you’re looking to rent in NYC, don’t wait until you’ve hit every dead end. Hire a broker who knows the ropes—and who can help you cut through the noise.

Need someone on your side? Reach out to Pinpointe Group and let’s find you a place.