The majority of the Jersey City Council and 32BJ-SEIU want New Jersey lawmakers to ban rent-setting algorithms like RealPage, a sentiment they will vote on via resolution tomorrow.
By John Heinis/Hudson County View
The resolution, written in support of legislation moving through Trenton, comes after explosive national reporting on rent-setting software RealPage.
RealPage, which is now under FBI investigation, was found to have artificially increased rents to such an extent that a federal lawsuit alleged its biggest users – among the nation’s largest landlords – of indirectly colluding to “cartelize” rents and drive up costs for tenants.
“It’s no secret that rents across the country, especially right here in Jersey City, are at untenable highs,” Ward E Councilman James Solomon, the lead sponsor of the measure, said in a statement.
“But to know that this housing crisis was in part artificially created—that landlords and developers are essentially colluding to jack up rent prices for everyone else—is a slap in the face. If rent-setting software has the power to rig the housing market for the wealthiest property managers in the country, then we as elected officials have a duty to take that power away and level the playing field for working families—and Trenton must take action to do just that.”
The resolution also indicates that median rents in Jersey City have gone up 19 percent between 2019 and 2022, with the U.S. Census Bureau showing that 41 percent of Jersey City residents are burdened, meaning they spend more than 30 percent of their income on rent.
“The skyrocketing rents and market distortions caused by algorithmic rent setting by proptech companies like RealPage and Yardi would be a cause for alarm in the best of circumstances,” added NJ State Director for 32BJ SEIU Ana Maria Hill.
“That this is happening amid a housing crisis not just in Jersey City but across New Jersey and, indeed, the country, is intolerable. 32BJ is proud to join Council Member Solomon and the Jersey City Council on this resolution calling for the Legislature to ban this practice.”
Council President Joyce Watterman, Ward A Councilwoman Denise Ridley, Ward B Councilwoman Mira Prinz-Arey, Ward D Councilman Yousef Saleh, Ward F Councilman Frank “Educational” Gilmore, as well as Councilmen-at-Large Daniel Rivera and Amy DeGise, have all come out in support.
“The rise of algorithms that prioritize profits that are detached from reality is not only exacerbating a housing crisis, but if left unchecked, will wreak havoc on families, their surrounding communities, and regional economics,” Saleh stated.
“Software platforms like RealPage should be banned given their proven track record for exploiting residents and making large property owners rich. Here in Jersey City, we strive to make sure predatory practices are not in operation as we look to build fair industries for all,” noted Gilmore.
The Jersey City Council convenes tomorrow at City Hall, 280 Grove St., tomorrow at 6 p.m., with the public session streaming live on Microsoft Teams.
