Source: Bloomberg

Date Published: 7.2.2025

Link: Massachusetts to Follow NYC in Making Landlords Pay Broker Fees – Bloomberg

Article Summary: Massachusetts is shifting broker fee payments from renters to landlords, easing a major upfront cost that often equals one month’s rent. This reform is meant to reduce housing costs and aligns with broader efforts to make housing more affordable, including $2 billion for public housing and incentives for new development on state-owned land. While the move could bring immediate relief, some worry landlords might raise rents in response, with the article highlighting the need for strong enforcement. NYU Urban Lab Commentary: Given that housing prices are directly correlated with housing production costs, it is likely that Landlords will simply pass the broker fee back through to the tenant. However, the pass through may obviate the need for large up front payments by the tenant, and instead provide a form of landlord financing for the fee.