Marketplace Tech Cities take the lead in battling rent-setting algorithms
Apr 23, 2025
The controversy surrounding algorithmic rent-setting is heating up as cities like San Francisco and Minneapolis take action against these tools. The Biden administration has sued RealPage, questioning the fairness of its pricing algorithms. Amidst growing concerns over housing affordability, cities are leading the charge to ban these practices, sparking debates about potential price-fixing and the role of technology. The clash between landlords and regulators is intensifying, highlighting the urgent need for effective housing policies.
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Cities Ban Price-Setting Algorithms
- In 2024, the Biden administration sued RealPage for algorithms enabling landlord price collusion. - Cities like San Francisco, Philadelphia, Berkeley, and Minneapolis are banning such software to protect renters.
Weak Enforcement Concerns
- Enforcement of bans on rent-setting algorithms is weak, mostly limited to fines. - Small landlords worry about being unfairly caught, complicating the balance between business needs and tenant protections.
States Lag Behind Cities
- State-level bans lag behind city action due to legislative complexity and demographics. - Washington state is the furthest ahead, with other states like New York and Colorado attempting but failing to pass bans.