"RealPage says it can help its clients "optimize rents to achieve the overall highest yield, or combination of rent and occupancy, at each property.""
"The "private data algorithms" advertised by these software companies, Hochul says, cause the "housing market distortion" that harms renters "during a historic housing supply and affordability crisis.""
"In other words, two or more rental property owners or managers who set rents with an algorithm are, in practice, choosing to not compete with each other, whether they do so "knowingly or with reckless disregard," the law says."
New York signed a law banning landlords' use of price-fixing software to set rental rates, becoming the first state to prohibit algorithmic pricing by landlords. The law treats property owners who use such software as colluding, meaning multiple owners who set rents with an algorithm are considered to be not competing whether they act knowingly or with reckless disregard. Software firms like RealPage offer algorithms that set rents, suggest optimal occupancy, and determine lease terms. Investigations linked such algorithms to rising rents nationwide and estimated that use of the software cost US tenants about $3.8 billion in 2024. Several cities had enacted similar local bans.
Read at The Verge
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