By 5 Towns Central Staff

NEW YORK CITY (August 23, 2026)

A class action complaint filed in New York accuses major brokerage firm Compass of manufacturing an artificial supply shock that has driven up rental costs across Manhattan.

According to the lawsuit, Compass controls over 80 percent of available rental listings in Manhattan following years of acquisitions. Plaintiffs argue that the firm has leveraged this position to withhold listings from free, public platforms like StreetEasy, a Zillow-owned service, in an effort to bypass platforms that do not charge high broker fees and to force consumers toward proprietary channels.

The complaint alleges that hiding these inventories severely restricted public supply, causing available rental units across New York to drop 40 percent over the past year. Market reports cited in the filing indicate this drop corresponded with a jump in rental price increases, surging from 3 percent in June to 6 percent in July. One of the plaintiffs noted watching prices climb in real time before ultimately signing a one-bedroom lease in downtown Manhattan for $5,270 per month this August.

A Zillow spokesperson weighed in on the litigation, stating that withholding listings from public platforms hurts everyday consumers and squeezes an already strained housing market during a crisis.

The lawsuit asks the court to order Compass to disgorge unjust profits, pay damages to affected renters who leased non-rent-stabilized units since August 1, 2026, and issue an injunction blocking the practice of hiding listings from public platforms.