I
n the past five years, New York City's median rent has skyrocketed by nearly 30%, reaching an all-time high of $3,800 a month. This surge in rents is good news for rental agents, who can earn higher commissions. However, a StreetEasy survey of over 400 agents reveals that 85% believe the city's affordability crisis has hurt their business, with almost a quarter describing the impact as severe.

    The main culprit behind this trend is the record-low vacancy rate of 1.4%, which drives up rents and makes it difficult for new leases to be signed. As UrbanDigs co-founder John Walkup notes, "People who would have been represented by a broker are perhaps just staying in place." This limited supply has also made it challenging for agents to secure deals.

    The rental market was more forgiving before the pandemic, with median August rents increasing only 2% from 2014 to 2019. However, since then, rents have risen 29%, while wages have grown at a slower pace. At Elina Brewer's agency, which manages nearly 800 units across Brooklyn and Manhattan, residents are reluctant to move due to the lack of affordable options.

    Brewer notes that retention rates for landlords are high, but this has come at the expense of her business: "The retention has been great for landlords, but I don't have any inventory." Agents like Brewer are spending more time marketing units with no guarantee of payment, and many are earning less money per hour than they once did. Some brokers have even resorted to offering concessions or discounts to secure deals.

    High interest rates have also stifled development, and pending legislation threatens to further reduce agents' earnings. A bill that would require landlords to pay broker fees is moving forward in the City Council, which could lead to more concessions being offered by brokers.