[nickelpro]

Ya that's a silly explanation, the only relevant point is this:

The price charged by brokers to landlords is less than the perceived value of the labor required for the landlord to list the property, receive calls from interested renters, and show the property.

This isn't surprising because brokers charge next to nothing to the landlords because they make their money on the fees from renters.

Renters are forced to abide this situation because of the aforementioned mismatch in supply and demand.

Why does this market crop up in some cities but not others? It's hard to say, some claim it's rent control but buildings without rent control still have exorbitant broker's fees in NYC. However, this is hardly the only market niche that is cultural rather than dictated purely by market forces. Americans don't buy bidets, the Japanese still frequently prefer cash transactions to electronic payment, and San Franciscans don't charge brokers fees.

[reaperman]

> The price charged by brokers to landlords is less than the perceived value of the labor required for the landlord to list the property, receive calls from interested renters, and show the property.

There's no way this costs $10,000 ... the equivalent of 160 hours (a full month) of highly-paid labor. In a housing-constrained city where the landlords product sells itself.