Gov. Mikie Sherrill (D) signed the Forbidding the Algorithmic Inflection of Rent (FAIR) Act into law today, a bill that state Senator (D-33) Brian Stack sponsored in the upper chamber.
By John Heinis/Hudson County View
“Housing affordability is one of the defining challenges facing New Jersey, and we’re using every tool available to bring costs down. 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,” Sherrill said in a statement.
“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.”
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.
The Jersey City Council voted to ban rent-setting algorithms in May of last year, with the Hoboken City Council following suit about six months later, both as HCV first reported.
“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,” added Stack, also the Union City mayor.
“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.”
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.
“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,” noted Senate Majority Leader M. Teresa Ruiz (D-29), the other primary Senate sponsor.
“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.”
The leaders of several good government advocacy groups praised the bill signing, including New Jersey Future Executive Director Peter Kasabach.
“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,” he expressed.
“We thank Governor Sherrill for continuing to advance a comprehensive housing affordability agenda and strengthen protections for New Jersey’s renters.”
One of the primary sponsors on the lower chamber, Assemblywoman Katie Brennan (D-32), also expressed excitement about her first bill being signed into law.
“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. This type of software recommends identical increases across different properties and neighborhoods, driving up rents and pricing people out of their communities,” she expressed.
“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.”
Editor’s note: This story was updated with a comment from Assemblywoman Katie Brennan (D-32).
 signed the FAIR Act into law today, a bill that state Senator (D-33) Brian Stack sponsored in the upper chamber.){kind=link}