2236 viewsBy Bess Freedman, CEO Brown Harris Stevens
The introduction of Council Member Chi Ossé's Bill Intro 360 threatens not only the livelihood of New York City real estate agents but also the financial welfare of the very tenants this bill seeks to protect.
If passed, this bill will shift brokerage rental fees onto landlords. In response, landlords will incorporate these fees into the monthly rent, causing tenants to face increased rents not only the year they sign but each year they choose to renew. An upfront fee, clearly stated in writing, provides transparency. However, this bill would make the fees hidden and progressive, creating a misleading situation for renters.
Hardworking agents, who earn nothing unless a deal is closed, will also face a significant financial impact. The starting income for a NYC agent is $52,000 a year – less than most politicians backing this bill earn. In fact, many of these agents are renters themselves.
Renters comprise nearly 70% of the New York City housing population. This bill will negatively affect them and the agents who dedicate their time, expertise, and market knowledge without any promise of compensation until a transaction occurs. The potential financial harm to renters and their agents is substantial and far-reaching, driven more by a political agenda than by a genuine effort to make real progress. There is no data supporting the claim that rents will decrease with Intro 360!
Here are the facts:
- Housing affordability will not be solved by this misguided legislation; it will worsen.
- This bill will make it harder for brokers to be fairly paid, raise housing costs, and limit housing access—the last thing New York City needs right now.
- Housing is expensive due to a lack of supply – it’s Economics 101.
- In 2023, less than 10,000 new multifamily units were proposed in New York City. Experts agree that more than 500,000 new units are needed to keep up with population growth by 2030. The lack of supply and increasing demand creates a substantial opportunity for higher rents. This bill does nothing to address that.
- Intro 360 will essentially eliminate exclusive listings, encouraging competing agents to share incomplete information about units, reverting the market to the opaque, confusing times of the 1990s.
- Brokers are crucial in helping incoming residents navigate the unique and complex rental market in New York.
- Fewer brokers in the industry will result in fewer professionals trained in fair housing law in transactions, to the detriment of renters.
- The current market determines whether a broker fee is paid by the owner or tenant and this bill would remove that consumer choice.
On June 12th, agents from across NYC gathered at City Hall in opposition of this bill. On this same day, in the midst of a very tight rental market, 49% of Manhattan rentals on Streeteasy are still No Fee, meaning landlords are still choosing to pay. That number is 63% in Brooklyn. This further underscores that If the free market is allowed to act, tenants have a choice and transparency; Intro 360 would take that away.
Local lawmakers and the public must fully understand what is at stake before considering Intro 360. New Yorkers simply cannot afford for rents to increase at a time when quality housing is in such high demand. This bill will do the opposite of its intended effect—people will pay more over time, and the process will be far less transparent for everyone involved.
