Rent Algorithms Face Rollback Threat in GOP Tax Bill

Congress Offers RealPage a Potential Escape Hatch

According to the WSJ, RealPage is under fire. The data company faces lawsuits for allegedly helping landlords inflate rents using rent algorithms that recommend pricing based on aggregated market data. Now, a provision in the House GOP’s tax bill could offer it some protection.

The bill would ban state and local governments from regulating AI and automated decision systems for the next 10 years. That includes rent-setting software like RealPage’s. If the Senate passes the bill, it could override local bans already in place and prevent new ones from taking effect.

Legal Risks Still Loom

Even if the bill becomes law, RealPage will still face major lawsuits. The company is the target of class actions and a lawsuit from the US Department of Justice. Plaintiffs say RealPage helped landlords coordinate rent prices—violating antitrust laws.

Policy analysts estimate RealPage could face up to $73B in damages. Some landlords, including Cortland, have already settled with the government or dropped the software.

Fitch Ratings expects RealPage to lose more clients. Landlords fear legal risk and government scrutiny.

Cities Ready to Fight Back

Many local governments have already banned algorithmic pricing. Cities like San Francisco, Philadelphia, and Providence acted swiftly. Others—including Jersey City and San Diego—are finalizing their own bans. Colorado’s governor is reviewing a statewide ban.

If Congress overrides these efforts, local leaders say they’ll respond with legal action. Providence City Council President Rachel Miller said, “We would no longer be able to enforce this ban.”

Jersey City Councilman James Solomon, who sponsors a local ban, said rent control may be the next tool. “That would be the biggest weapon if folks are using algorithms to jack up rents,” he said.

Multifamily Industry Pushes for Protection

Apartment industry groups support the bill. The National Multifamily Housing Council (NMHC) helped shape the AI provision during a bipartisan task force. It has urged lawmakers to pass it.

“This would make it much easier for multifamily owners to feel confident they won’t get sued,” said NMHC President Sharon Wilson Géno. “The current class litigation has cost millions.”

RealPage is also suing the city of Berkeley to fight back against its local ban.

What’s Next

The Senate will now debate the bill. If passed, it could reshape how AI tools are regulated nationwide. However, the bill won’t end the lawsuits. Most are based on existing laws, not just AI use.

“This isn’t a get-out-of-jail-free card,” said Kevin Weller, a New Jersey renter suing RealPage. “But it could muddy the waters.”

As housing prices remain a hot issue, the RealPage debate marks a larger battle: who controls the use of algorithms in housing—and at what cost.