Cities lead bans on algorithmic rent hikes as states lag behind
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Minneapolis is the latest city to crack down. State legislative efforts have moved slowly.
This story was originally published by Stateline.
Minneapolis on Thursday has become the fourth U.S. city to ban algorithmic rental price-fixing software, joining San Francisco, Philadelphia and Berkeley, California, in a growing wave of legislation aimed to protect renters from rental price-gouging.
While momentum builds at the city level — with Portland, Oregon; Providence, Rhode Island; and San Diego exploring similar laws — statewide bans have been slower to emerge.
The legislation targets tools such as RealPage’s YieldStar, which uses landlord-shared data to recommend rent increases — a practice critics say worsens unaffordable housing. Stateline reported last year that the algorithms have drawn increasing oversight attention as the country continues to wrestle with an affordable housing crisis.
“This wave of action shows that local governments are stepping up where federal enforcement takes time,” said Ivan Luevanos-Elms, executive director of Local Progress, the national network helping coordinate these efforts.
In 2024, proposed legislation failed to prohibit the use of these algorithms stalled in Illinois, New York and Rhode Island.
Washington state has seen the most movement, with a proposed ban passing the Senate and awaiting a House vote. Colorado’s House approved a similar bill this week, and it’s now headed to the Senate.
Elsewhere, New York Democratic Gov. Kathy Hochul has proposed legislation to ban algorithmic rent-setting tools, while Oregon lawmakers are considering an expansion of city-level bans. Lawmakers in Arizona, California, Idaho, Illinois, Georgia, New Hampshire, Hawaii have introduced bills, but none has advanced.
The legislative surge follows lawsuits against RealPage and six major landlords, accused by the U.S. Department of Justice and 10 state attorneys general of collusion and anticompetitive practices. But with court cases expected to drag on for years, cities are opting for faster action.
Still, these bans have met resistance from real estate and landlord groups. In Oregon, landlords and property managers argue the software helps manage rentals more efficiently.
“Without these tools, we must rely on outdated methods,” said Oregon landlord Aaron Douglas in submitted testimony. “This isn’t just an inconvenience; it’s a step backward.”
Stateline reporter Robbie Sequeira can be reached at rsequeira@stateline.org
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