Opinion: Addressing New York’s affordability crisis requires statewide action

New York is facing a severe affordability crisis – and nowhere is that more true than in the homes we live in.

Right now, rents in New York City are higher than ever. This past year, rents rose seven times faster than wages. The median asking rent in my home borough of the Bronx was $2,700 last year. At that level, a household earning the borough’s median income of $46,838 would spend almost 70% of their annual income on rent. As a result, many are finding themselves forced to leave the city – particularly young New Yorkers who contribute meaningfully to our economy. It’s bad for our ability to attract a diverse young population, it’s bad for our economy and it’s bad for New York.

Last year, the cost just to move into a new apartment ballooned to more than $13,000 on average – more than five times what most renters have in savings. As New Yorkers know all too well, the biggest portion of that upfront cost is often the broker fee, which most renters are forced to pay even if they’re not the ones who hired the broker. 

But we have an opportunity to address this crisis: I’m reintroducing a bill to help set the market straight and make renting throughout New York more affordable, transparent and fair. Most importantly, the bill guarantees that if a broker is involved in a rental transaction, the person who hired them will pay them.

The bill makes the entire real estate process more transparent by requiring written agreements whenever a renter or landlord hires an agent to represent them. And it will eliminate conflicts of interest by preventing agents from representing landlords and tenants at the same time. The bill will apply these same protections to buyers and sellers.

Real estate agents play an important role, connecting prospective renters to their future landlords and vice versa. And it stands to reason that the person who hired them should pay for their services.

The New York City Council passed similar legislation this past fall, and my bill would solidify that win for residents across the five boroughs and expand those savings across New York state. Research shows that this change will cut upfront costs by 42%, saving the average New York City renter more than $5,000. It also puts New York in line with housing practices in every other state, aside from Massachusetts, which is also pushing to address burdensome housing costs. 

While some may argue that landlords will just raise rents in response, historical precedent suggests this won’t happen. Over the past three years, asking rents for units that eliminated broker fees actually increased more slowly than for rental units that continued charging them. This is because broker fees cause a “lock-in effect,” meaning that renters can't afford the cost to move, which landlords use to raise rent prices faster than if the fees were eliminated. 

This is also a problem of fairness. Most “no fee” apartments are in luxury buildings that few New Yorkers can afford. As a result, most New Yorkers are forced to compete for the less expensive units with broker fees, while affluent New Yorkers can avoid paying those extra upfront costs. And this is all happening in an already high-priced, supply-constrained market. 

The reality is that paying a broker fee has become a requirement, not a choice, for most renters – particularly in communities of color.

If we want to remain the most attractive, diverse and thriving state in the country, something has to give. We need to release this pressure and address these upfront costs today. We must pass my proposed statewide legislation that tackles the barrier of upfront costs and creates a more affordable and equitable housing market.

Let me be clear: These policies alone won’t cure our affordability challenges, and we are pushing for a slate of reforms to tackle undersupply and other issues. Still, this legislation will create an immediate positive impact for renters, helping New Yorkers afford to live here at a time when it is more challenging than ever.

New York has always been a state of opportunity. My bill will help ensure it stays that way for generations to come.