NJ Law Cracks Down on Rent-Increasing Algorithms
The FAIR Act bans landlords from using sensitive rental data in pricing software as officials say algorithmic coordination has pushed rents higher.
- On Monday, New Jersey Gov. Mikie Sherrill signed the FAIR Act, legislation prohibiting landlords from using rent-setting algorithms to address rising housing costs. Sherrill described the move as curbing "collusion by algorithm that pushes rents higher."
- This statewide ban follows local measures in Jersey City and Hoboken, building on a federal antitrust lawsuit New Jersey filed last year against RealPage and major landlords for allegedly coordinating to manipulate rents.
- The FAIR Act bars software from using sensitive data including occupancy rates, housing supply levels, and lease termination dates to recommend pricing. It also prohibits landlords from coordinating rent increases through parallel pricing practices.
- RealPage spokesperson Patrick Mendoza said the company will comply but criticized the restrictions, arguing "there is a need for more housing supply, not restrictions on analytical software." Assemblywoman Katie Brennan praised the bill for ending "illegal rent increases."
- Taking effect next summer, the law preempts conflicting local rules as the administration simultaneously expands NJ HOMES, a technical-assistance program designed to identify zoning barriers and accelerate new housing construction across the state.
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New Jersey becomes fourth state to regulate rent algorithms blamed for inflating prices
New Jersey has joined a small but growing list of states seeking to crack down on a troubling practice that can drive rents higher. Gov. Mikie Sherrill signed a new law intended to stop landlords from using rent-setting algorithms to coordinate prices and occupancy levels, a step state leaders have said will help protect renters in an already costly housing market. What happened? On July 20, Sherrill signed the Forbidding the Algorithmic Inflati…
New Jersey bans algorithmic rent pricing under FAIR Act
New Jersey Gov. Mikie Sherrill added her state to a growing list banning algorithmic pricing tools blamed for higher apartment rents. Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law Monday in Newark. New Jersey becomes the fourth state to regulate software lawmakers and regulators said allowed landlords to coordinate rents. “Landlords, who should be competing to provide the best price to renters, are instead …
He knows New Jersey law that limits algorithms to fix rents and seeks to curb artificial increases in the real estate market.
NJ law cracks down on rent-increasing algorithms
NEWARK, N.J. (PIX11) — A new law in New Jersey looks to target the use of rental algorithms – which officials say calculate how much landlords should charge based on data, using it to inflate rent. Governor Mikie Sherrill signed the legislation, dubbed the FAIR Act, into law Monday in Newark. “The problem is that [...]
Gov. Sherrill signs bill restricting landlords' use of rent-setting software
Gov. Mikie Sherrill on Thursday called landlords’ use of rent-setting software “collusion by algorithm.” (Photo by Anne-Marie Caruso/New Jersey Monitor)Gov. Mikie Sherrill signed legislation Monday restricting landlords’ use of algorithmic software to set rents, a move state officials say is part of a push to rein in housing costs. The new law bars landlords from using software to analyze competitor’ pricing and vacancy data to set rent levels, …
New Jersey restricts rent-setting algorithms amid rising housing costs
Gov. Mikie Sherrill holds press conference on rental algorithms followed by signing A3497 into law. The Garden State joins New York in barring landlords from using algorithms to coordinate rents. [ more › ]
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