July 20, 2026

Governor Sherrill Signs the Forbidding the Algorithmic Inflation of Rent (FAIR) Act Into Law to Protect Renters from Algorithmic Rent Setting

The FAIR Act regulates the use of algorithmic rent-setting systems to prevent landlords from using these algorithms to coordinate rental prices or occupancy levels. Preventing the use of software that enables this landlord collusion protects renters from artificially inflated rents and promotes a fairer, more competitive housing market.

“Housing affordability is one of the defining challenges facing New Jersey, and we’re using every tool available to bring costs down,” said Governor Mikie Sherrill. “Landlords, who should be competing to provide the best price to renters, are instead colluding to drive prices up through so called ‘algorithmic pricing.’  That stops now. As we continue our whole-of-government approach to addressing our housing crisis, this legislation is another important step toward making our state more affordable.”

“Rents in New Jersey are already far too high. But when landlords and tech companies conspire to artificially inflate rents, they make it even more difficult for hardworking New Jerseyans to find housing they can afford. That’s why I’m grateful to Governor Sherrill and the Legislature for their leadership in protecting New Jersey renters from rising housing costs through the FAIR Act,” said Attorney General Jennifer Davenport. “We are proud to be leading the fight in court against algorithmic collusion by landlords and tech companies. Today’s legislation provides a much-needed systemic solution for the problem, granting renters important protections that will expand housing opportunity in our state.”

“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.”

“This bill gives families the power to end illegal rent increases that tear apart communities,” said Ana Maria Hill, 32BJ SEIU Vice President and New Jersey State Director. “By prohibiting the use of rent-setting algorithms that can drive up housing costs, the FAIR Act takes an important step toward making housing more affordable for families. Crucially, it empowers renters to help identify and challenge unlawful practices through clear avenues for reporting violations and seeking relief. We look forward to working alongside tenants and the Attorney General’s Office to ensure we stand up to law-breaking landlords. We would like to thank Governor Mikie Sherrill for delivering for New Jersey renters and following through on a key campaign issue.”

Across the country, the use of algorithmic rent-setting software has come under increasing scrutiny amid concerns that landlords are using the platforms to coordinate rent increases. These practices have been linked to higher rents in already constrained housing markets, raising concerns among housing advocates, economists, and antitrust enforcement agencies.

“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 Brian 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 M. Teresa 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.”

Today’s bill signing builds on the Sherrill Administration’s comprehensive affordability agenda, including increasing housing production, advancing transit-oriented development, expanding affordable housing opportunities, and coordinating state agencies through the Housing Governing Council to address New Jersey’s housing shortage.

By signing the FAIR Act into law, Governor Sherrill is taking decisive action to make the rental market more fair, transparent, and competitive – and to shield renters from corporate tools designed to maximize profits at the expense of affordability

What they’re saying:

“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. 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.” - Assemblywoman Donlon (D-Monmouth)

“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. At a time when too many New Jerseyans are struggling, this bill is about putting people before profits.” - Assemblyman Onyema (D-Essex, Union)

“The Supportive Housing Association of New Jersey applauds Governor Sherrill and the Legislature for taking action to promote equity and transparency in New Jersey's rental market. Stable, affordable housing is the foundation for health, independence, and community inclusion, Policies that help protect renters from unfair practices are an important step toward ensuring more New Jerseyans can access and maintain homes where they can live independently and be part of the community.” - Kate Kelly, Executive Director, Supportive Housing Association of New Jersey

“As housing remains unaffordable for too many New Jersey residents, the FAIR Act adds important safeguards to our rental market by preventing certain data tools from being used to further drive-up costs. We thank Governor Sherrill for continuing to advance a comprehensive housing affordability agenda and strengthen protections for New Jersey’s renters.” - Peter Kasabach, Executive Director, New Jersey Future

“The advent of algorithmic rent-setting software by corporate landlords is driving up rents and making it even harder for New Jerseyans to find and keep affordable housing. By signing the FAIR Act into law, New Jersey is sending a clear message that price manipulation has no place in our housing market. This law puts renters first, increases transparency, and takes an important step toward ensuring that corporate landlords can't use technology to rig the market. We applaud Governor Sherrill and the Legislature for standing with renters over corporate greed and ensuring that housing costs are determined by a competitive market and not by algorithms built to maximize profits.” - Dena Mottola Jaborska, New Jersey Citizen Action Executive Director

“Fair rent means more than market rates, it means ensuring that working people can afford to live in the communities they call home. Too many residents are being priced out of housing despite working every day. The FAIR Act is an important step toward protecting renters from practices that artificially inflate rents and helping to prevent housing instability and homelessness. Affordable housing must be truly affordable for the people who live and work in New Jersey.” - Crystal A. Orr, President & CEO, Urban League of Union County

“At Communities In Cooperation (CIC), we recognize that affordable housing is one of the most critical components of successful reentry. We support policies that foster a fair, transparent, and competitive housing market because women returning from incarceration should be judged by their determination to rebuild—not by barriers created through unfair housing practices. Every woman deserves a genuine opportunity to secure stable housing, restore her family, and contribute positively to her community.” - Rev. Dr. Pamela B. Jones, CEO, Communities In Cooperation Inc. (CIC)

“The Community Health Law Project supports every effort to protect New Jersey tenants. As a nonprofit legal services organization that assists individuals with disabilities, chronic health conditions, and the frail elderly who live on fixed incomes, our clients are at an increased risk of housing instability due to unfair rent practices. We therefore applaud the legislature for advancing this bill and Governor Sherrill for signing it into law.” - Erika Kerber, President/Executive Director, Community Health Law Project