Additional Coverage:
- Your landlord might be using an algorithm to raise rents. If Kamala Harris has her way, that could be banned. (newsbreak.com)
Vice President Kamala Harris recently introduced a comprehensive housing initiative aimed at addressing issues within the U.S. rental market, particularly targeting unethical practices by landlords. A key element of her plan is to prevent property owners from colluding to artificially inflate rental prices. This initiative comes at a time when a growing number of American renters are struggling with affordability.
Harris has pledged her support for new legislation that would outlaw the use of certain algorithms that enable landlords to synchronize rent increases across the market. This bill, named the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act, seeks to regulate firms like RealPage, a tech company implicated in several lawsuits for allegedly using its pricing software to manipulate rental costs unfairly.
During a speech focusing on economic issues, Harris criticized these practices, stating, “Some corporate landlords are collaborating to set high rent prices, often utilizing algorithms and price-fixing software, which is both anti-competitive and inflationary.”
The backdrop to this issue is a significant escalation in housing costs, driven largely by a pronounced shortage of available housing. Since 2019, rents across the nation have surged by approximately 19%, leading to an unprecedented number of tenants who dedicate a substantial portion of their income to rent and utilities.
The legality of rent-setting algorithms like those used by RealPage is currently under heavy scrutiny. States like Arizona and Washington, DC have launched lawsuits against the company, accusing it of conspiring with landlords to set rental prices at non-competitive levels.
Recent reports have even indicated that the U.S. Department of Justice has taken action against RealPage for similar allegations.
The legislative efforts Harris supports are part of a broader conversation about the role of large-scale investors and pricing algorithms in escalating housing costs. Critics argue that targeting these elements alone won’t fully address the more extensive issues of supply and demand that underlie the housing affordability crisis. However, addressing predatory practices is widely seen as a politically favorable move that could provide some relief for affected renters and buyers.
In her campaign, Harris has not only focused on regulatory measures but also proposed boosting housing supply by promising to oversee the construction of 3 million new homes over four years. Housing experts and economists have mixed opinions on the impact of such regulations, with some cautioning that overly stringent measures could deter investment and ultimately exacerbate the housing shortage.
As Harris emphasizes these issues in her campaign, the spotlight remains on how these policy proposals will resonate with voters, particularly those feeling the squeeze of a competitive housing market.