- RealPage filed suit against New York State, challenging a new law that bans software-based rent recommendations, calling it unconstitutional.
- The company argues the statute, set to take effect December 15, restricts its First Amendment right to offer data-driven advice to landlords.
- The law targets tools like RealPage’s revenue management software, which the company says supports fair and efficient rental pricing.
- Critics claim RealPage’s software contributes to rent inflation, but the company calls the accusations misinformation.
A First Amendment Fight
RealPage, a Texas-based real estate technology company, is pushing back against a recently passed New York law that restricts the use of rent pricing tools. In a federal lawsuit, RealPage claims the law violates free speech rights by banning lawful advice and recommendations generated by its revenue management software.
What the Law Does
The law, codified as New York General Business Law Section 340-b, aims to curb the use of software that utilizes public data to set or recommend rental prices. Signed into law by Governor Kathy Hochul in October, it’s scheduled to take effect on December 15, 2025—unless halted by the courts.
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Industry Backlash
RealPage says the law is the result of a “misinformation campaign” that falsely blames the company’s software for rising rents. CEO Dirk Wakeham emphasized that the tool helps property owners operate responsibly and respond to market needs, not manipulate them.
Legal Perspective
The company’s legal counsel, Theodore Boutrous of Gibson, Dunn & Crutcher LLP, argued that the law is a “misguided” attempt at rent control and a violation of constitutional protections. “New York legislators should propose real solutions to housing affordability issues instead of banning constitutionally protected speech,” he said.
The Bigger Picture
This lawsuit comes amid growing scrutiny of AI-enabled pricing tools in the rental market. Critics allege these tools contribute to coordinated rent hikes and reduced affordability, while supporters argue they bring efficiency and transparency to the market.
Why It Matters
If upheld, the New York law could set a precedent that limits the use of algorithmic pricing tools in real estate—a move with national implications for PropTech firms and landlords alike. RealPage is seeking a court injunction to block enforcement of the statute before it takes effect.
What’s Next
The legal challenge could become a high-profile test of how far states can go in regulating technology in the housing market. If successful, RealPage’s case could safeguard the use of AI-powered pricing tools nationwide—or signal growing regulatory pushback.
