Colorado Governor Vetoes Bill to Ban Rent-Setting Algorithms
Colorado's governor vetoed legislation that would have banned rent-setting algorithms used by companies like RealPage. The White House reportedly found the software cost Denver renters an additional $1,600 annually, though the governor cited ongoing litigation and argued algorithmic pricing need not facilitate illegal collusion.
What happened
Democratic Governor Jared Polis vetoed House Bill 1004 on May 30, 2025, a bill passed by the Democratic-led Colorado Legislature that would have banned landlords from using rent-setting algorithms, specifically targeting RealPage's software.
In his veto letter, Polis stated he had concerns about prohibiting algorithmic pricing software and suggested that any collusion among landlords would already violate existing law. He indicated a preference to wait for ongoing court cases to run their course.
Reported impact
The Biden White House determined that Denver-area renters in apartments using RealPage's software paid more than $1,600 more annually than their peers, the second-highest price disparity among 20 major metro areas studied.
Housing advocates and the American Economic Liberties Project expressed outrage at the veto, saying it prevented Governor Polis from saving Coloradans money.
Index analysis
RealPage's tool allows landlords to input rent, occupancy, and other information that the algorithm uses to generate recommended rental prices. Critics contend the software combines confidential information from multiple real estate management companies in ways that enable price alignment and reduce competition.
A 2022 ProPublica investigation quoted company executives celebrating how the software enabled rent increases above what property managers would have otherwise charged.
Governance controls
The U.S. Department of Justice and Colorado's attorney general have filed lawsuits against RealPage, accusing the company of facilitating an illegal price-fixing scheme. RealPage has denied collusion allegations and fought to have lawsuits dismissed.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.