Algorithm-driven increases in rent: Enough is enough, let's put a stop to it.
In the heart of the Big Apple, tenants have been grappling with notable increases in their rents and abnormally long apartment vacancy periods. A recent investigation by ProPublica discovered that this trend may be due to the use of real estate management software that sets rental prices using artificial intelligence (AI) by landlords in New York City.
To address this concern, New York state is sponsoring a bill in the state Legislature (S.7882/A.1417) to outlaw price-fixing algorithms in the rental housing market. This proposed legislation aims to regulate AI-driven pricing practices that could enable collusion or unfair pricing in residential rentals.
The bill would prohibit the use of software tools that facilitate price collusion among rental housing managers, guarding against algorithmic price-fixing practices in the marketplace. It would also update New York's antitrust laws by prohibiting landlords and property managers from setting rents or determining changes to rents based on algorithm-driven recommendations which take into account private pricing information.
If passed, the bill would make clear that rent price-fixing via artificial intelligence is against the law and set clear boundaries against behaviors that lead to anticompetitive practices and price fixing. It would also prohibit companies from knowingly operating platforms that facilitate collusive algorithmic rent-setting, or from doing so with reckless disregard.
The use of this software is seen as anti-capitalistic and robbing residents of their ability to advocate for themselves. In the current housing crisis in New York City, it is unconscionable for landlords to employ algorithms to inflate rents on hard-working New Yorkers.
A 2024 analysis by the White House Council of Economic Advisors found that anticompetitive pricing technology charged tenants across the country an extra $3.8 billion in rent in 2023 alone. This trend has prompted a broader legislative trend seen in at least 17 states in 2025, addressing algorithmic pricing with a focus on housing affordability and transparency.
New York has also enacted related legislation (SB 3008) requiring disclosure when algorithmic pricing is used. However, as of August 2025, the bill S.7882/A.1417 remains a pending or proposed bill actively discussed and tracked in the New York State Legislature.
In a related development, the U.S. Department of Justice and several states filed a lawsuit against RealPage, the largest company behind the price-setting software, and six of the nation's biggest landlords who have utilized it. The lawsuit alleges that these companies used "algorithmic pricing schemes that harmed renters" by sharing "sensitive information about rental prices" and using "algorithms to coordinate to keep the price of rent high."
As decisive federal action on this issue seems unlikely under the current administration, it is essential for states like New York to take action. The bill seeks to ensure fairness and transparency in the rental housing market by prohibiting landlords from using algorithms to artificially inflate rents or reduce housing supply.
In conclusion, the proposed bill in New York State aims to prevent the use of AI in setting rental prices from being used to collude and fix prices, thereby ensuring a fair and transparent rental market for all tenants.
- The proposed bill in New York State, S.7882/A.1417, seeks to outlaw price-fixing algorithms in the rental housing market, aiming to regulate AI-driven pricing practices that could enable collusion or unfair pricing.
- The bill would prohibit the use of software tools that facilitate price collusion among rental housing managers and update New York's antitrust laws by prohibiting landlords and property managers from setting rents based on algorithm-driven recommendations.
- If passed, the bill would make clear that rent price-fixing via artificial intelligence is against the law and set clear boundaries against behaviors that lead to anticompetitive practices and price fixing.
- The lawsuit filed by the U.S. Department of Justice and several states against RealPage and major landlords alleges that they used "algorithmic pricing schemes that harmed renters" by sharing sensitive information about rental prices and using algorithms to coordinate to keep rent prices high.
- In a broader context, at least 17 states have addressed algorithmic pricing with a focus on housing affordability and transparency in 2025, reflecting a growing concern and legislative trend across the nation.
