Lopez, Donlon, Onyema, Brennan bill prohibits certain software-driven pricing coordination practices that can contribute to soaring housing costs

(TRENTON) – Legislation designed to prevent rent-setting software from pricing New Jerseyans out of their homes was signed into law today. Known as the “Forbidding the Algorithmic Inflation of Rent (FAIR) Act,” Bill A3497 will restrict the use of rental pricing algorithms and the impact that these algorithms may have on the overall rental market. Assembly members Yvonne Lopez, Margie Donlon, Chigozie Onyema, and Katie Brennan sponsored the legislation.

Bill A3497 targets the use of algorithmic rent-setting software and coordinated pricing practices that limit competition among landlords, driving up housing costs. The bill will make it illegal for rental property owners and third-party coordinators to share sensitive market information or use algorithms to coordinate rent prices.

Below are statements from the bill sponsors:

“As these algorithms increase in popularity, they contribute to an increasingly unaffordable housing market, placing undue financial strain on renters and exacerbating the housing crisis in New Jersey,” said Assemblywoman Lopez (D-Middlesex), Chair of the Assembly Housing Committee. “We cannot let New Jersey families fall prey to predatory practices – intentional or otherwise - enabled by technology. This bill is a vital tool in stopping corporations from using big data to hike up housing and rental costs.”

“When we talk about affordability in New Jersey, housing and rental prices often take center stage and it’s important that we do all that we can to reduce the prices of rental properties,” said Assemblywoman Donlon (D-Monmouth). “Preventing the use of coordinated pricing practices is an important step in those efforts, particularly as a way of ensuring a fair and competitive market here in New Jersey.”

“New Jersey residents deserve a housing market that works for them, not against them. When technology is used to manipulate the market, it becomes even harder for our residents to find affordable housing,” said Assemblyman Onyema (D-Essex, Union). “At a time when too many New Jerseyans are struggling, this bill is about putting people before profits.”

"We're in the middle of a housing crisis, and it's gotten worse because corporate landlords are using algorithms to jack up everyone's rent," said Assemblywoman Brennan (D-Jersey City). "This type of software recommends identical increases across different properties and neighborhoods, driving up rents and pricing people out of their communities. No one should have to bid against a machine designed to squeeze every last dollar out of them. The FAIR Act bans the use of rent-setting algorithms and gives renters a fair shot at an apartment they can afford."