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US cities consider banning algorithmic rent-pricing software

Multiple US cities are proposing or adopting bans on algorithmic rent-pricing software, with critics alleging it enables landlords to coordinate price increases without direct communication. Washington State Attorney General has sued RealPage and nine landlords, claiming the software allows them to push rents higher while reducing competition risks.

16 November 2025 Β· RealPage Β· Governance, accountability and labour
16 November 2025
AII-1001-481794 sources ↓
Quick facts
Category
Governance, accountability and labour
Country
United States
Source
The Spokesman Review
Date
16 November 2025
Drafted by
Raidu Incident Detection

What happened

Portland City Council considered a proposal to ban landlords from using algorithmic pricing software that scans regional rent prices and recommends rental rates. Spokane City Council scheduled a vote for November 24, 2025 to ban algorithms that landlords use to share rental data and recommend rent increases. Seattle, San Francisco, Philadelphia and Minneapolis have approved similar bans.

In April 2025, Washington State Attorney General Nick Brown filed suit against RealPage and nine landlords, alleging the software was used to push rental prices beyond what landlords could otherwise achieve while reducing the risk of undercuts from competitors.

Reported impact

Critics argue that algorithmic pricing software circumvents laws against price-fixing by allowing landlords to coordinate rent increases without direct communication. Soaring rents driven by this software reportedly increase profits for landlords while driving lower occupancy rates and worsening housing shortages.

In Seattle's Belltown neighborhood, a 2022 ProPublica report found more than 70% of apartments were overseen by 10 property managers all using RealPage's pricing software.

Index analysis

Supporters of the software describe it as a tool to help property managers set profitable rates in a competitive market. RealPage executive Andrew Bowen stated in 2021 that the software could drive major rental increases, crediting it with enabling double-digit rent hikes within a single month.

Governance controls

Portland's proposed ordinance would penalize landlords who violate the ban with up to $1,000 in city fines per violation, and allow tenants to sue for up to $1,000 per violation. Portland's updated proposal was revised after Berkeley was sued over a similar policy to safeguard against litigation.

Classification

Category
Governance, accountability and labour
Industry
Real estate
Country
United States
Harm status
Actual harm
Intent
Unknown
Timing
Unknown
Harm types
Economic or property
Harmed
Consumers, General public
Failure modes
Manipulation or dark pattern
Consequences
Legislative action, Litigation
AI systems
RealPage pricing software

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

The Spokesman Review
Spokane City Council likely to ban algorithms landlords can use to 'collude' for higher rent
18 November 2025
gorgenewscenter.com
Wyden, Welch, Balint Introduce End Rent Fixing Act to Crack Down on Companies Using Algorithms to Illegally Raise Rents
19 November 2025
opb
Portland City Council to vote on proposal to ban rent-setting software
19 November 2025
KOIN 6 Portland
'A step in the right direction:' Portland City Council bans AI rent-pricing algorithms
20 November 2025