Algorithmically generated pricing has made an impact in industries like airlines and retail, prompting growing concerns in the real estate market. In New Jersey, cities like Hoboken and Jersey City are prohibiting algorithmically generated rental rates. This trend aligns them with other cities such as San Francisco, Minneapolis, and Philadelphia, revealing a local government push to address technology use in pricing. The contentious nature of algorithmically generated rents stems from their reliance on non-public data, raising ethical and regulatory questions about fairness in the rental market.
"Airlines have begun experimenting with AI-generated airfares, and the retail equivalent of surge pricing has shown up at grocery stores."
"Two of the most prominent cities in New Jersey, Hoboken and Jersey City, have taken steps to prohibit the use of algorithmically generated rates on rental properties."
"Jersey City was the first city or town in the state to implement such a measure, which puts it in the company of San Francisco, Minneapolis and Philadelphia."
"One of the reasons these algorithmically generated rents are so contentious is because they use, as Loder puts it, 'software and non-public data' in their calculations."
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