T
he Real Estate Board of New York is suing to block a city law that forces landlords to pay brokers' fees, arguing it's a toxic mandate that will worsen the housing market.

    The FARE Act requires landlords to hire and pay brokers who list their properties online, but REBNY claims this violates state laws and brokers' free-speech rights. The law's actual impact is more concerning: it will lead to fewer apartment listings, making it harder for renters to find a place even as landlords struggle to fill empty units.

    More than half of apartments on sites like Zillow and StreetEasy are listed by multiple brokers, but FARE requires that only the hired agent can promote the property online. This effectively curbs brokers' speech and violates contract law by voiding existing agreements between landlords and brokers.

    The law will also hike rent prices as landlords absorb the new expense or pass it on to tenants. Progressives claim this will help renters, but many small-time landlords own just a few buildings and can't afford to absorb the cost. They may take units off the market or sell out to larger corporations, exacerbating the housing crisis.

    The FARE Act is disastrous for landlords, brokers, and renters alike, and its legality is dubious. The judge overseeing REBNY's lawsuit should kill it to prevent further damage to the already-struggling housing market in New York City.