Gov. Sherrill signs bill restricting landlords’ use of rent-setting software

Key points

• Governor Murphy signed a bill limiting landlords' use of rent-setting software
• The law targets practices that may constitute unlawful collusion in rental pricing
• Algorithmic rent-setting tools have drawn scrutiny from tenant advocates and regulators
• The legislation aims to increase transparency and fairness in the rental housing market
• New Jersey joins states addressing algorithmic pricing in real estate

FAQ

What does the new New Jersey law do about rent-setting software?

The law restricts landlords' use of automated rent-setting software that critics argue facilitates collusion and artificially drives up rental prices. It represents New Jersey's effort to regulate algorithmic pricing in the rental housing market.

Why are rent-setting algorithms controversial?

Tenant advocates argue these software tools allow landlords to coordinate pricing in ways that suppress competition and inflate rents, potentially constituting unlawful collusion. The practice raises concerns about fair housing practices and affordability.

Who pushed for this legislation?

Tenant advocates and housing reform supporters have argued that algorithmic rent-setting practices harm renters and distort the rental market. Governor Sherrill's signing reflects growing regulatory scrutiny of these tools nationwide.