'Life just becomes increasingly unaffordable.' Lawmakers move to ban rent-pricing algorithms statewide
A rent-setting algorithm is a tool that allows landlords and property management companies to share and analyze info about how much their competitors are charging tenants.
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New Jersey lawmakers are considering legislation that would ban the use of rent‑setting algorithms.
A rent-setting algorithm is a tool that allows property management companies to share information about how much they're charging tenants and analyze competitors' rates.
“They’re using their software, not just to manage the building, but to coordinate with all the other buildings that they may own or with other management companies entirely, to basically fix the price or collude to raise the price,” said Assemblywoman Katie Brennan, a Democrat representing the 32nd District.
Brennan is a sponsor of the bill.
“When they are colluding across the state, across the region, there’s no escape, and then life just becomes increasingly unaffordable,” she said.
Jersey City resident Lonzell Battle said he believes rent prices in his neighborhood do not reflect the age or condition of the buildings.
“We’re not stupid. We understand new buildings go for a premium,” Battle said. “But the buildings that you see...all around me should not be going for a premium as if it was just built a year ago.”
Battle said many of his neighbors have moved away.
“I don’t want to leave here,” he said. “I don’t want to have to move so far away just because of these predatory prices.”
Jersey City passed a local ordinance banning rent‑setting algorithms late last year, but some residents said they haven't felt its impact yet.
“I believe in my heart of hearts that these algorithms really screwed over the working class,” Battle said.
