‘It's a rigged system': San Diego becomes the 5th US city to ban using AI software to set rent prices
The measure was introduced by Councilmember Sean Elo-Rivera, who claimed the programs are harming tenants by giving landlords an unfair advantage.
I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast)
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)
"It's a rigged system," Councilmember Elo-Rivera told CBS 8. "We know that these companies are able to coordinate with one another via the software to keep prices artificially high, and sometimes even receive coaching from the software, the platform that says, don't negotiate, leave units vacant if necessary, to keep these prices high."
Minneapolis, Philadelphia, San Francisco and Berkeley have all banned the use of such software.
The Justice Department has filed an antitrust lawsuit against Texas-based RealPage, which controls 80% of the market for rent-setting software, and six of the country's biggest landlords for 'participating in algorithmic pricing schemes that harmed renters.' Attorneys General of several states have joined the fight.
If the suit is successful and if bans continue, tenants may soon find some relief from high prices, which could give them much-needed wiggle room in their budgets.
San Diego's ban targets software programs made by companies like RealPage. These companies collect private rental market data from landlords and put the data into a program that uses AI algorithms to recommend rental rates, propose rental price increases, and set occupancy rates.
Because the programs use sensitive private data there are concerns that they help landlords violate antitrust laws prohibiting competitors from colluding to keep prices higher than they should be. In some cases, the programs even urge landlords to keep units empty or to raise rents. This has consequences. In San Diego, for example, the programs were allegedly causing rental prices to be 2% to 7% higher than they would have been without the programs.
Read more: This hedge fund legend warns US stock market will crash a stunning 80% — claims 'Armageddon' is coming. Don't believe him? He earned 4,144% during COVID. Here's 3 ways to protect yourself
"What I pay is $4,200 for rent, it's almost more than a mortgage for a house," local renter George Medrano told CBS 8. Medrano said his rent has gone from $2,600 in 2020 to the $4,200 he is paying today, and while he acknowledges market forces were a contributing factor, he also thinks collusion on the part of landlords helped push the price of his unit higher.
Not everyone supports the ban, though. Councilmember Raul Campillo voted against it, expressing concern that it could prevent landlords from doing routine and necessary assessments of their company's strength against competitors. A group representing local landlords also expressed concern that the rules were too vague
Another local renter, Rowan Liao, also pointed out that when algorithms set rates, at least they are based on math instead of emotions. "I think when prices are written by people, there's unavoidable bias introduced, kind of like emotion-based pricing," Liao said to CBS 8.
Still, with the ban in effect, landlords will need to stop using the software, or they could be sued by tenants for a violation of the new rule.
Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it
Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Judge denies Trump administration request to end a policy protecting immigrant children in custody
McALLEN, Texas (AP) — A federal judge ruled Friday to deny the Trump administration's request to end a policy in place for nearly three decades that is meant to protect immigrant children in federal custody. U.S. District Judge Dolly Gee in Los Angeles issued her ruling a week after holding a hearing with the federal government and legal advocates representing immigrant children in custody. Gee called last week's hearing 'déjà vu' after reminding the court of the federal government's attempt to terminate the Flores Settlement Agreement in 2019 under the first Trump administration. She repeated the sentiment in Friday's order. 'There is nothing new under the sun regarding the facts or the law. The Court therefore could deny Defendants' motion on that basis alone," Gee wrote, referring to the government's appeal to a law they believed kept the court from enforcing the agreement. In the most recent attempt, the government argued they made substantial changes since the agreement was formalized in 1997, creating standards and policies governing the custody of immigrant children that conform to legislation and the agreement. Gee acknowledged that the government made some improved conditions of confinement, but wrote, 'These improvements are direct evidence that the FSA is serving its intended purpose, but to suggest that the agreement should be abandoned because some progress has been made is nonsensical.' Attorneys representing the federal government told the court the agreement gets in the way of their efforts to expand detention space for families, even though Trump's tax and spending bill provided billions to build new immigration facilities. Tiberius Davis, one of the government attorneys, said the bill gives the government authority to hold families in detention indefinitely. 'But currently under the Flores Settlement Agreement, that's essentially void,' he said last week. The Flores agreement, named for a teenage plaintiff, was the result of over a decade of litigation between attorneys representing the rights of migrant children and the U.S. government over widespread allegations of mistreatment in the 1980s. The agreement set standards for how licensed shelters must provide food, water, adult supervision, emergency medical services, toilets, sinks, temperature control and ventilation. It also limited how long U.S. Customs and Border Protection could detain child immigrants to 72 hours. The U.S. Department of Health and Human Services then takes custody of the children. The Biden administration successfully pushed to partially end the agreement last year. Gee ruled that special court supervision may end when HHS takes custody, but she carved out exceptions for certain types of facilities for children with more acute needs. In arguing against the Trump administration's effort to completely end the agreement, advocates said the government was holding children beyond the time limits. In May, CBP held 46 children for over a week, including six children held for over two weeks and four children held 19 days, according to data revealed in a court filing. In March and April, CPB reported that it had 213 children in custody for more than 72 hours. That included 14 children, including toddlers, who were held for over 20 days in April. The federal government is looking to expand its immigration detention space, including by building more centers like one in Florida dubbed ' Alligator Alcatraz,' where a lawsuit alleges detainees' constitutional rights are being violated. Gee still has not ruled on the request by legal advocates for the immigrant children to expand independent monitoring of the treatment of children held in U.S. Customs and Border Protection facilities. Currently, the agreement allows for third-party inspections at facilities in the El Paso and Rio Grande Valley regions, but plaintiffs submitted evidence showing long detention times at border facilities that violate the agreement's terms.
Business Wire
14 minutes ago
- Business Wire
Discover Yourself Named to Inc. 5000 for Second Time
EXCELSIOR, Minn.--(BUSINESS WIRE)--Discover Yourself, the world's largest distributor of the Insights Discovery® personality assessment, has once again been named to the Inc. 5000 list of America's Fastest-Growing Private Companies. This second-time honor places the Minnesota-based training firm alongside some of the country's most innovative and dynamic businesses. 'Being named to the Inc. 5000 is more than an award. It's proof our methods work, and that organizations everywhere are hungry for meaningful change.' Share The Inc. 5000 list is widely regarded as the hallmark of entrepreneurial success, celebrating innovation, customer impact and sustained revenue growth. Earning a spot on the list twice reflects Discover Yourself's strong performance, and its enduring ability to adapt and deliver value in a rapidly changing workplace environment. Easily the most colorful company on the Inc. 5000 list Founded by internationally recognized speaker, author and trainer Scott Schwefel, Discover Yourself transforms communication and teamwork by teaching the universal language of color. Through the Insights Discovery framework, individuals identify their unique blend of Fiery Red, Sunshine Yellow, Earth Green and Cool Blue energies, unlocking self-awareness and awareness of others. This approach enables participants to reduce misunderstandings, build stronger connections and collaborate more effectively. 'Most people who train with us have done other personality assessments but rarely use them. With ours, they start applying it immediately because every conversation, every email and every interaction gets better,' says Schwefel. Discover Yourself's programs — ranging from leadership development and sales training to executive coaching and team-building workshops — are trusted by global brands such as Caterpillar, 3M, Whirlpool, Zendesk and Workday. The company is actively expanding its reach with new online learning platforms, scalable virtual workshops and digital resources to make its programs accessible to teams anywhere in the world. Its reach spans all 50 states and more than 30 countries, powered in part by newly launched digital clones that can deliver on-demand training in 170 languages. Schwefel, one of only 60 global faculty certified to train other trainers, has personally taken 4,000 CEOs through Insights Discovery training, and has spoken to more than 2000 groups. His TED Talk has nearly four million views. He is also a popular keynote speaker worldwide. 'Being named to the Inc. 5000 is more than an award. It's proof our methods work, and that organizations everywhere are hungry for meaningful change,' comments Schwefel. Discover Yourself has grown from a two-person operation to 17 employees, who support a global network of more than 300 Insights Discovery certified facilitators. Clients reporting measurable boosts in collaboration, productivity and leadership capability. Visit Discover Yourself to take a one-minute quiz to discover where you fall in the color model. If you'd never experienced Insights Discovery and would like to learn more, contact Scott@
Digital Trends
14 minutes ago
- Digital Trends
SpaceX reveals target date for Starship's 10th flight test
SpaceX's Starship rocket last flew at the end of May. Just over two weeks later, as it prepared for the 10th flight test, the upper-stage Starship spacecraft suddenly exploded on the ground at SpaceX's Starbase facility near Boca Chica, Texas. Not surprisingly, the setback delayed plans for the 10th flight test, but on Friday, SpaceX announced a target date for the highly anticipated event: Sunday, August 24, with a launch window opening at 6:30 p.m. CT (7:30 p.m. ET). The tenth flight test of Starship is preparing to launch as soon as Sunday, August 24 → — SpaceX (@SpaceX) August 15, 2025 The Starship, which comprises the first-stage Super Heavy booster and the upper-stage Starship spacecraft, is the most powerful rocket ever to fly, generating around 17 million pounds of thrust as it leaves the launchpad. NASA is planning to use the rocket for crew and cargo missions to the moon as part of the Artemis program, and even for the first crewed missions to Mars. But before then, SpaceX needs to fully prove the rocket's capabilities and safety through continued refinement and testing. Recommended Videos In a post on its website on Friday, SpaceX said that its engineers have been spending the last few months making hardware and operational changes to increase the vehicle's reliability. Notably, the upcoming flight test will not see the upper-stage booster landing back at the launch tower as seen with some of the earlier flights. Instead, the 71-meter-tall booster will descend into the ocean, allowing SpaceX to test various controlled landing burns and recovery techniques without risking damage to the Starbase facilities. SpaceX also said it will run several experiments focused on enabling the Starship's upper stage to return to the launch site in a future test. 'Flight tests continue to provide valuable learnings to inform the design of the next generation Starship and Super Heavy vehicles,' the company said on Friday. 'With production ramping up inside Starfactory at Starbase alongside new launch and test infrastructure actively being built in Texas and Florida, Starship is poised to continue iterating towards a rapidly and fully reusable launch system.'
