'Maybe some apartments are not being listed for rent or are being snapped up by people who are using brokers'

"I know New York City has new laws about brokers' fees."

Dear Dollar Signs,

I'm moving from Philadelphia to New York City in September and I've been touring apartments. I'm looking for a one-bedroom in Manhattan or Brooklyn.

I'm wondering if it is worth it to go through a broker. I know New York City has new laws about brokers' fees, but I feel like maybe some apartments are not being listed for rent or are being snapped up by people who are using brokers. Please advise.

New York or Nowhere

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

Dear New York,

First, congratulations! I'm definitely biased, but you're moving to the best city in the world.

It's also one of the most expensive and competitive cities when it comes to housing. Many of my friends have been in your exact situation, wondering if brokers still hold some power when it comes to renting.

When I moved to New York 11 years ago, brokers were the gatekeepers of some of the best apartments. They formed relationships with landlords and building superintendents in order to exclusively list an apartment, charge tenants sky-high fees and then split the profit.

Landlords would only accept tenants who applied using a broker, which meant many brokers had monopolies on full blocks of apartments, and sometimes whole neighborhoods. They could charge pretty much whatever they wanted, because it was almost impossible to find a landlord who wasn't in cahoots with a broker. Every lease I've ever signed felt like a shakedown.

As of last summer, under the city's Fairness in Apartment Rental Expenses Act, the person who hires the broker must pay the broker's fee. This takes away the incentive for landlords to hire a broker, because then they would be required to pay the fee. The only reason a renter would have to pay a broker's fee is if they hired one independently. The act was opposed by the Real Estate Board of New York, a lobbying group that represents the real-estate industry, including brokers.

A broker's fee is typically between 12% and 15% of the annual rent. The main benefit of hiring a broker (and, honestly, I struggled to find one) would be that they can help you find a place faster. If you are on a tight schedule and aren't able to come into town to view apartments, then using a broker could be worth the money.

But personally, I would skip it. If you can navigate sites like StreetEasy and Zillow, you'll easily be able to find "no-fee" apartments, or apartments that do not require you to go through a broker to rent.

The bigger problem you'll be facing is New York City's chronic housing shortage. In June, the number of active listings decreased 16% in Manhattan and 0.4% in Brooklyn from the previous year, according to real-estate company the Corcoran Group. At the same time, rents increased by 10% in both boroughs.

I'm sure you know this, but I want to emphasize that your cost of living is about to go up considerably. Rent for a one-bedroom apartment is 146% more expensive in New York City than in Philadelphia, according to data from Zillow. Grocery and restaurant prices are 11.5% and 24.9% higher in New York City, respectively, according to cost-of-living database Numbeo.

I know apartment hunting can be overwhelming, especially when you're doing it from a different city, and hiring a broker might seem like a convenience that's well worth the cost. But because your life is already about to become a lot more expensive, I would advise against it.

Write to Dollar Signs at dollarsigns@marketwatch.com.

By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms.

-Aditi Shrikant

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 27, 2026 10:51 ET (14:51 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.