TRENTON – Today, Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent, or FAIR Act, into law. The legislation, sponsored by Senator Brian Stack and Senate Majority Leader M. Teresa Ruiz, will help to stabilize housing costs for New Jersey families by banning the use of algorithmic tools that influence the price and supply of residential rental units.

“Companies that feed data into algorithms for landlords to collude and artificially inflate rents are violating our antitrust laws and squeezing tenants in the process. These are not your neighborhood landlord—they are large corporations making money hand over fist and forcing people out of their communities,” said Senator Stack (D-Hudson). “Housing is not a luxury; it's a necessity, and prohibiting the use of this software by landlords to increase rents will help ensure the market remains fair, competitive, and within reach for New Jersey families.”

“Unethical rent-setting algorithms used by landlords are undermining competition and driving up housing costs for New Jersey families who are already struggling to afford groceries, fuel, and child care,” said Senate Majority Leader Ruiz (D-Essex/Hudson). “In some cases, renters have been found to pay hundreds of dollars more each year because of artificial price markups. Banning this software will help level the playing field, protect consumers, and make housing more affordable.”

Businesses dedicated to providing clients with data to influence housing rates and occupancy levels are having a major impact on rental housing across the United States. According to a Washington Post analysis, one such company, RealPage, had at least 600 customers using its software to set prices for over 4.5 million residential units, or approximately 8% of all rental units in the country. This has led to elevated costs for some families, with a 2024 White House Council of Economic Advisors Report finding that rent-pricing algorithms added $70 per month to rents in buildings that used them, costing renters $3.8 billion more than they would have paid otherwise in 2023.

The bill, S-451, makes it unlawful to use an algorithmic device to influence the price and supply of residential rental units. Under the bill, it is unlawful and constitutes a violation of the New Jersey Antitrust Act for a rental property owner, or any agent, representative, or subcontractor acting on the owner's behalf, to receive, subscribe to, contract for, or use the services of any business that facilitates or coordinates agreements among rental property owners to restrict competition and increase housing costs.

The bill also requires the Attorney General to establish a complaints portal for alleged violations on the Department of Law and Public Safety website.

The law will take effect on the first day of the twelfth month following its enactment.