Federal prosecutors have accused software company RealPage of enriching itself "at the expense of renters who pay inflated pri

Landlords Are Using AI To Raise Rents — and Cities Are Starting To Push Back

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2024-12-03 07:00:04

Federal prosecutors have accused software company RealPage of enriching itself "at the expense of renters who pay inflated prices" By Wendy Fry

The Markup, now a part of CalMatters, uses investigative reporting, data analysis, and software engineering to challenge technology to serve the public good. Sign up for Klaxon, a newsletter that delivers our stories and tools directly to your inbox.

If you’ve hunted for apartments recently and felt like all the rents were equally high, you’re not crazy: Many landlords now use a single company’s software — which uses an algorithm based on proprietary lease information — to help set rent prices.

Federal prosecutors say the practice amounts to “an unlawful information-sharing scheme,” and some lawmakers throughout California are moving to curb it. San Diego’s city council president is the latest to do so, proposing a ban that would prevent local apartment owners from using the pricing service, which he maintains is driving up housing costs.

San Diego’s proposed ordinance, which is currently being drafted, comes after San Francisco enacted a first-in-the-nation ban on “the sale or use of algorithmic devices to set rents or manage occupancy levels” for residences in July. San Jose is considering a similar approach.