New York City’s rental market is arguably the country’s worst. Its metro area’s housing shortage exceeds 400,000 homes. Median asking rent has risen 7.3% year over year in New York City. San Francisco rents have risen twice as fast at 16.9%. These cities now have the nation’s highest rents.
Beyond high rents and scarce housing supply, these cities share another feature: Their state or local governments have banned algorithmic rent-setting, indicting technology for rising rents.
Rent software like RealPage automates leasing, rent collection, and marketing while optimizing rents and minimizing vacancy losses, enabling property owners to improve profitability before resorting to higher rents. The software’s rent-pricing function assists landlords by analyzing vast amounts of information on the rental market, like vacancy rates and market rents, then recommending rates. The software factors in when leases expire and how vigorous local demand is…