- New York bans AI rents, making it illegal for landlords to use algorithms to set or inflate rental prices.
- The law updates state antitrust rules to address concerns over tech-driven rent price-fixing.
- New York follows Connecticut and several US cities in regulating algorithmic rent-setting tools.
- Real estate tech firms like RealPage remain under federal civil investigation for alleged anticompetitive practices.
A Crackdown On AI-Powered Rent Tools
New York State is tightening its grip on rental market practices, reports GlobeSt. A new law explicitly bans landlords from using artificial intelligence or algorithmic systems to determine rent prices. The move, signed into law by Governor Kathy Hochul, targets the increasingly common use of predictive pricing tools in multifamily housing.
What The Law Says
The legislation is championed by State Senator Brad Hoylman-Sigal. It updates New York’s antitrust framework to clearly outlaw rent price-fixing through automated systems. Lawmakers argue that this technology, though marketed as efficient, can enable collusion-like behavior among landlords. As a result, it may drive rents higher across entire markets.
“It’s already too hard to be a renter in New York, and we cannot allow exploitative technology to make it any harder,” Hoylman-Sigal said.
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A Growing National Movement
New York is now the second state to enact this type of ban. Connecticut was the first, implementing its law in July. Meanwhile, cities such as Philadelphia, Seattle, San Francisco, Minneapolis, and Hoboken have introduced or passed similar regulations on AI-powered rent tools.
RealPage, Yardi Under Scrutiny
The legislation comes amid ongoing federal attention on companies like RealPage and Yardi, which offer rent-setting software used widely in the apartment industry. The Department of Justice continues a civil antitrust investigation into RealPage’s practices, although related criminal charges were dropped in late 2024.
Critics argue these platforms allow landlords to coordinate rent pricing indirectly, undermining market competition and exacerbating the housing affordability crisis.
Federal Pushback
While states and cities are acting locally, the federal government may take a different stance. In May, the US House of Representatives passed legislation aimed at blocking local governments from regulating automated decision systems. This includes rent-setting AI and would impose a ten-year restriction if enacted. The bill’s future remains uncertain in the Senate.
Why It Matters
As housing affordability remains a top issue across the US, lawmakers are increasingly questioning the role of technology in exacerbating rent hikes. Banning algorithmic rent-setting tools could mark a turning point in how housing markets are regulated. New York’s move signals stronger state-level resistance to tech-enabled price manipulation.
