New York Governor Kathy Hokul has signed a bill banning the “optimization” of rent prices using artificial intelligence (AI). She said such programs have cost Americans $3.8 billion in rent by 2024.
With the decision, New York became the first state in the United States to ban such software. Similar restrictions were previously in place in only a few cities, including San Francisco and Philadelphia.
The law prohibits the use of software that uses “optimization” algorithms to increase rent prices. These programs help landlords calculate rent rates and determine the number of tenants who will live in an apartment to maximize profits. Such systems include services like RealPage.
Governor Hokul said such technologies “are seriously hurting renters at a time of historic housing shortages and affordability crises.” He said that as a result of using RealPage and similar programs, Americans will have paid $3.8 billion more in rent by 2024.
Under the new law, property owners who use such programs to set rents will be considered participants in price fixing. This will be considered a separate offense.
