A growing number of cities across the United States are taking action against landlords' use of artificial intelligence software to set rental prices, amid concerns that the practice is driving up housing costs and potentially violating antitrust laws.
The controversy centers around algorithmic rental pricing platforms, with RealPage emerging as a leading provider. These systems use proprietary data from lease agreements to recommend rental rates to property owners, raising questions about potential price coordination across the market.
San Diego has become the latest city to propose restrictions, with its city council president drafting an ordinance to prohibit local apartment owners from using such pricing services. This follows San Francisco's groundbreaking move in July 2023, when it became the first U.S. city to ban algorithmic devices for setting rents and managing occupancy levels in residential properties.
The pushback is gaining momentum nationwide. Philadelphia's City Council passed a ban on algorithmic rental price-fixing with a veto-proof majority in September, while New Jersey is exploring similar legislation. San Jose, California is also considering comparable measures to protect renters.
Federal authorities have taken notice. In August, the Department of Justice, joined by attorneys general from eight states including California, North Carolina, and Washington, filed an antitrust lawsuit against RealPage. The legal action describes the company's practices as "an unlawful information-sharing scheme."
The mounting resistance reflects broader concerns about AI's role in housing affordability. As renters report increasingly uniform - and consistently high - rental prices across different properties, critics argue that algorithmic pricing tools may be eliminating natural market competition that traditionally helped keep housing costs in check.
As more cities contemplate regulatory action, the debate highlights the growing tension between technological innovation in property management and the need to maintain fair, competitive rental markets for residents.
Note: After reviewing the provided links, I found that neither of them were directly related to the topic of AI rental pricing or housing markets, so following the instructions, I did not include any links in the final article.