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New York Post
23-05-2025
- Business
- New York Post
Jersey City just banned landlords from using AI to sent rent — a first for the Garden State
Jersey City landlords are going to have to set rent the old fashioned way. The Jersey City Council voted unanimously on Wednesday to ban the use of AI-driven, rent-setting software by landlords. The ordinance, introduced by Councilmember James Solomon, is the first of its kind in the Garden State. Advertisement 5 Using AI-driven rent-setting software is officially a code violation in Jersey City. Blacqbook – 5 Jersey City Councilmember James Solomon. Jersey City The amended ordinance makes a code violation out of use of tools from rental software firms like RealPage or Yardi Systems. Advocates of the ordinance claim these tools help landlords and property management companies to artificially inflate rents and constrain supply. Advertisement Solomon, in a statement provided to The Post, called the move a 'bold stand' against rent collusion. 'With the passage of this first-in-the-state legislation, we are putting corporate landlords on notice: if you're using software like RealPage to coordinate rent hikes, you're breaking the law — and now, tenants and the city have the tools to hold you accountable,' the statement said. Enforcement of code violations includes the ability for residents to sue landlords or submit complaints to the city over the use of algorithmic rent-setting, according to Solomon. Detractors of the new ordinance say the measure fails to address the root of the problem — a lack of new housing supply. Others argue that the language of the bill is overly broad and could lead to unnecessary penalization for property owners, Gothamist reported. Advertisement 5 Jersey City and New York City share a beautiful river and a big housing problem. Mariusz – 5 Jersey City is among the most expensive places to rent in the country. James – Jersey City has a documented affordability problem. Rent prices in the city have increased by 50% since 2015, according to a 2024 report by the nonprofit Regional Plan Association. The city was the country's third most expensive city to rent in April, according to Zumper, right after New York City and San Francisco. Proponents of the new ordinance pin the problem, in part, on landlords' use of AI-driven tools to raise rents. Advertisement These tools, according to the bill, aggregate local prices, supply levels, occupancy rates and lease details. The information allows landlords to boost profits by selecting the most financially advantageous rental prices, lease terms or occupancy levels for their buildings. A 2022 ProPublica investigation found evidence of faster price increases in cities where RealPage's YieldStar software was widely adopted by major property management firms. 5 RealPage and other companies like it have been the subject of multiple lawsuits in recent years over the uses of their software. SOPA Images/LightRocket via Getty Images The ordinance comes on the heels of a similar bill proposed in fall 2024, which is currently stalled in the state Legislature, Gothamist reported. New Jersey Attorney General Matthew Platkin filed his own lawsuit in April against 10 of New Jersey's largest landlords and RealPage over the alleged use of software that forced 'tens of thousands' New Jersey residents to overpay for rent. 'The defendants in this case unlawfully lined their pockets at the expense of New Jersey renters who struggled to pay the increasingly unlivable price levels imposed by this cartel,' Platkin said in a press release. RealPage and Yardi could not be reached for comment by press time.
Yahoo
02-04-2025
- Business
- Yahoo
Cities — including Minneapolis — lead bans on algorithmic rent hikes as states lag behind
Photo via Getty Images. Minneapolis recently became the fourth U.S. city to ban algorithmic rental price-fixing software, joining San Francisco, Philadelphia and Berkeley, California, in a growing wave of legislation aimed to protect renters from rental price-gouging. While momentum builds at the city level — with Portland, Oregon; Providence, Rhode Island; and San Diego exploring similar laws — statewide bans have been slower to emerge. The legislation targets tools such as RealPage's YieldStar, which uses landlord-shared data to recommend rent increases — a practice critics say worsens unaffordable housing. Stateline reported last year that the algorithms have drawn increasing oversight attention as the country continues to wrestle with an affordable housing crisis. 'This wave of action shows that local governments are stepping up where federal enforcement takes time,' said Ivan Luevanos-Elms, executive director of Local Progress, the national network helping coordinate these efforts. In 2024, proposed legislation failed to prohibit the use of these algorithms stalled in Illinois, New York and Rhode Island. Washington state has seen the most movement, with a proposed ban passing the Senate and awaiting a House vote. Colorado's House approved a similar bill this week, and it's now headed to the Senate. Elsewhere, New York Democratic Gov. Kathy Hochul has proposed legislation to ban algorithmic rent-setting tools, while Oregon lawmakers are considering an expansion of city-level bans. Lawmakers in Arizona, California, Idaho, Illinois, Georgia, New Hampshire, Hawaii have introduced bills, but none has advanced. The legislative surge follows lawsuits against RealPage and six major landlords, accused by the U.S. Department of Justice and 10 state attorneys general of collusion and anticompetitive practices. But with court cases expected to drag on for years, cities are opting for faster action. Still, these bans have met resistance from real estate and landlord groups. In Oregon, landlords and property managers argue the software helps manage rentals more efficiently. 'Without these tools, we must rely on outdated methods,' said Oregon landlord Aaron Douglas in submitted testimony. 'This isn't just an inconvenience; it's a step backward.' Stateline reporter Robbie Sequeira can be reached at rsequeira@ Like Minnesota Reformer, Stateline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: info@
Yahoo
28-03-2025
- Business
- Yahoo
Cities lead bans on algorithmic rent hikes as states lag behind
New York Democratic Gov. Kathy Hochul has proposed legislation to ban algorithmic price fixing in rental units such as these in Manhattan. But in her state and elsewhere, few such bills have advanced. () Minneapolis on Thursday has become the fourth U.S. city to ban algorithmic rental price-fixing software, joining San Francisco, Philadelphia and Berkeley, California, in a growing wave of legislation aimed to protect renters from rental price-gouging. While momentum builds at the city level — with Portland, Oregon; Providence, Rhode Island; and San Diego exploring similar laws — statewide bans have been slower to emerge. The legislation targets tools such as RealPage's YieldStar, which uses landlord-shared data to recommend rent increases — a practice critics say worsens unaffordable housing. Stateline reported last year that the algorithms have drawn increasing oversight attention as the country continues to wrestle with an affordable housing crisis. 'This wave of action shows that local governments are stepping up where federal enforcement takes time,' said Ivan Luevanos-Elms, executive director of Local Progress, the national network helping coordinate these efforts. In 2024, proposed legislation failed to prohibit the use of these algorithms stalled in Illinois, New York and Rhode Island. Washington state has seen the most movement, with a proposed ban passing the Senate and awaiting a House vote. Colorado's House approved a similar bill this week, and it's now headed to the Senate. Elsewhere, New York Democratic Gov. Kathy Hochul has proposed legislation to ban algorithmic rent-setting tools, while Oregon lawmakers are considering an expansion of city-level bans. Lawmakers in Arizona, California, Idaho, Illinois, Georgia, New Hampshire, Hawaii have introduced bills, but none has advanced. The legislative surge follows lawsuits against RealPage and six major landlords, accused by the U.S. Department of Justice and 10 state attorneys general of collusion and anticompetitive practices. But with court cases expected to drag on for years, cities are opting for faster action. Still, these bans have met resistance from real estate and landlord groups. In Oregon, landlords and property managers argue the software helps manage rentals more efficiently. 'Without these tools, we must rely on outdated methods,' said Oregon landlord Aaron Douglas in submitted testimony. 'This isn't just an inconvenience; it's a step backward.' Stateline reporter Robbie Sequeira can be reached at rsequeira@ SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
05-02-2025
- Business
- Yahoo
Senate Dems ask Hegseth to probe potential price gouging on military families' housing
Democrats on the Senate Banking Committee are asking Defense Secretary Pete Hegseth to probe what's driving the price hikes in rent and housing costs for military families. Specifically, 15 Democrats — led by the committee's ranking member, Sen. Elizabeth Warren (D-Mass.), and Sen. Ruben Gallego (D-Ariz.) — wrote a letter on Monday asking the Department of Defense (DOD) to investigate whether the high prices are a result of companies and landlords using RealPage's rent-pricing system. RealPage, a property management software company, is facing legal action from the Justice Department and 10 state attorneys general, who argue its rent-pricing system allows landlords to align their rents with each other to stifle competition and increase their own revenue, thereby hurting tenants. 'Services provided by RealPage may enable landlords to raise rents even more aggressively to the detriment of military families,' the lawmakers wrote. 'RealPage's services YieldStar and AIRM help landlords exchange proprietary information about lease terms and rents in order to maximize revenue.' The Senate Democrats are asking DOD to investigate whether landlords and private companies with which DOD has housing contracts are using RealPage's products 'to price gouge military families'; whether the DOD is taking steps to protect military families' data from being disclosed to housing companies; and what steps DOD is taking to ensure military families have access to safe, clean and affordable housing. 'The Department of Defense has a responsibility to protect military families from predatory private housing companies and ensure that taxpayer dollars meant for military families are not being pocketed by unscrupulous landlords,' they wrote. The lawmakers expressed concern, too, that the Basic Allowance for Housing (BAH) — which the DOD provides service members to help with housing costs — is not keeping up with the costs of rent. The Senate Democrats asked DOD to probe, too, reports that landlords are raising rents to profit off BAH increases rather than because of market conditions, citing a study saying this practice is 'common.' 'These findings raise significant concerns that landlords are profiteering by taking taxpayer money that is intended to support military families,' the lawmakers wrote. They also noted that, in 2022, the DOD increased the BAH for 28 areas where rental prices increased dramatically. In 'several' of those areas — according to the Senate Democrats, who cited the DOJ lawsuit — RealPage allegedly 'contributed to excessive rental costs.' RealPage did not respond to a request for comment, but the company has forcefully defended itself against the legal challenges it faces. The company says housing affordability is the 'real problem' and that the purpose of its revenue management system 'is to optimize revenue – not to maximize rents.' The company also has said that some price recommendations include lowering rents – not just raising rents – and that the landlords and companies that use the software are never coerced into accepting the software's pricing recommendations. 'Housing affordability should be the real focus. RealPage is proud of the role our customers play in providing safe and affordable housing to millions of people. Despite the noise, we will continue to innovate with confidence and make sure our solutions continue to benefit residents and housing providers alike,' RealPage CEO and President Dana Jones said in a statement on the company's website, responding to the 'false claims' in 'media and legal filings.' A DOD spokesperson said the Department would respond directly to the authors of the letter. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
04-02-2025
- Business
- The Hill
Senate Dems ask Hegseth to probe potential price gouging on military families' housing
Democrats on the Senate Banking Committee are asking Defense Secretary Pete Hegseth to probe what's driving the price hikes in rent and housing costs for military families. Specifically, 15 Democrats — led by the committee's ranking member, Sen. Elizabeth Warren (D-Mass.), and Sen. Ruben Gallego (D-Ariz.) — wrote a letter on Monday asking the Department of Defense (DOD) to investigate whether the high prices are a result of companies and landlords using RealPage's rent-pricing system. RealPage, a property management software company, is facing legal action from the Justice Department and 10 state attorneys general, who argue its rent-pricing system allows landlords to align their rents with each other to stifle competition and increase their own revenue, thereby hurting tenants. 'Services provided by RealPage may enable landlords to raise rents even more aggressively to the detriment of military families,' the lawmakers wrote. 'RealPage's services YieldStar and AIRM help landlords exchange proprietary information about lease terms and rents in order to maximize revenue.' The Senate Democrats are asking DOD to investigate whether landlords and private companies with which DOD has housing contracts are using RealPage's products 'to price gouge military families'; whether the DOD is taking steps to protect military families' data from being disclosed to housing companies; and what steps DOD is taking to ensure military families have access to safe, clean and affordable housing. 'The Department of Defense has a responsibility to protect military families from predatory private housing companies and ensure that taxpayer dollars meant for military families are not being pocketed by unscrupulous landlords,' they wrote. The lawmakers expressed concern, too, that the Basic Allowance for Housing (BAH) — which the DOD provides service members to help with housing costs — is not keeping up with the costs of rent. The Senate Democrats asked DOD to probe, too, reports that landlords are raising rents to profit off BAH increases rather than because of market conditions, citing a study saying this practice is 'common.' 'These findings raise significant concerns that landlords are profiteering by taking taxpayer money that is intended to support military families,' the lawmakers wrote. They also noted that, in 2022, the DOD increased the BAH for 28 areas where rental prices increased dramatically. In 'several' of those areas — according to the Senate Democrats, who cited the DOJ lawsuit — RealPage allegedly 'contributed to excessive rental costs.' RealPage did not respond to a request for comment, but the company has forcefully defended itself against the legal challenges it faces. The company says housing affordability is the 'real problem' and that the purpose of its revenue management system 'is to optimize revenue – not to maximize rents.' The company also has said that some price recommendations include lowering rents – not just raising rents – and that the landlords and companies that use the software are never coerced into accepting the software's pricing recommendations. 'Housing affordability should be the real focus. RealPage is proud of the role our customers play in providing safe and affordable housing to millions of people. Despite the noise, we will continue to innovate with confidence and make sure our solutions continue to benefit residents and housing providers alike,' RealPage CEO and President Dana Jones said in a statement on the company's website, responding to the 'false claims' in 'media and legal filings.' A DOD spokesperson said the Department would respond directly to the authors of the letter.
