Bed-Stuy Rents Hike After Broker Fee Ban, Study Shows

BEDFORD-STUYVESANT, BROOKLYN — Rents in Bed-Stuy jumped by 8 percent in the few short days following an unexpected broker fee ban for rentals, a study found.

It's the fourth-largest neighborhood rent increase tallied by a PropertyClub study. It found landlords citywide jacked up rents by 6 percent after they learned last week that New York Department of State officials planned to ban brokers from billing tenants for their services.

The study's data shows New York City renters likely will see a typical overall savings of about $3,600 the ban — which is on hold until a lawsuit by brokers is sorted out — stands.

But that won't spare them some sticker shock. Here are the study's top ten neighborhoods in the city for rent increases:

1. Harlem 10.90%
2. East New York 10.40%
3. Hamilton Heights 8.50%
4. BedStuy 8.00%
5. Williamsburg 8.00%
6. Lower East Side 8.00%
7. West Village 7.90%
8. Bushwick 7.80%
9. Astoria 7.70%
10. Greenwich Village 7.70%

PropertyClub pored through more than 7,000 listings and found more 70 percent of properties saw a spike in rent following the ban, according to the study.

Brooklyn saw the highest increase at 6.4 percent, followed by Queens at 6.1 percent, the study found.

Broker's fees typically are 15 percent a year's rent. So even with an increased rent, renters still stand to save.

Bed-stuy renters, for instance, likely will see their rent increase by a total $2,544 a year, which is less than the typical $4,770 upfront broker's fee, the study states.

That $2,996 savings for Bed-Stuy residents ranks 29th out of 39 city neighborhoods in the study, according to the data.

Read the study here.