Massachusetts Expected to Shift Broker Fees to Landlords in 2026 Budget

Massachusetts is poised to enact a significant change in its rental market by shifting the responsibility for broker fees from renters to the party who hires the broker, typically the landlord, under the 2026 state budget package that Governor Maura Healey has pledged to sign. This reform aims to alleviate the financial burden on renters, who often face upfront costs exceeding $10,000, including broker fees, security deposits, and prepaid rent. Governor Healey and advocates argue this change will help lower the high cost of living and make renting more affordable in Massachusetts. While some experts, including Boston Mayor Michelle Wu, view spreading out these costs positively, others caution that landlords may increase rents to offset the new expense, emphasizing the need for more housing development to address supply issues. The legislation reflects a broader effort by the Healey administration to tackle housing affordability, with the law potentially taking effect as early as next year. Despite the relief this policy offers renters, housing advocates stress that further measures are needed to comprehensively address the state's housing crisis.