Just as the lack of regulation over young people’s use of LLMs has sparked national concern, the lack of regulation over landlords’ use of algorithms to set rent prices has also caused worry. Specifically, the use of RealPage, an AI-powered service to “automate and optimize rental housing operations,” was put under constraint by New York Governor Hochul’s administration. Critics accused it of artificially inflating rent costs by using algorithm-based information as an excuse. A federal judge has now challenged the decision.
NEWS10 ABC reports that Judge Valerie Caproni believes RealPage is in favor of winning the case. The privately owned company argues that the government shouldn’t restrict its use of “math” and publicly available data to help property owners increase their profits. As a result, Caproni has temporarily blocked the regulation that Hochul signed, allowing landlords to use this algorithmic service again.
To be clear, this isn’t a case of Caproni simply siding with landlords; she argued that the state hadn’t proved this law was “narrowly targeted enough to avoid violating” RealPage’s freedom of speech. The company’s CEO, Dirk Wakeham, also protested, calling out lawmakers for policing speech instead of offering citizens “real housing solutions.”
The White House Blames Immigration For Increased Rent Prices, Not Landlords Abusing AI
It’s been no secret that the cost of living has gone up noticeably over the past several years. The DOJ believes algorithmic services like RealPage would be used to overcharge renters, many of whom are already suffering from the rising costs of gas, food, and other essentials. However, the White House argues that its crackdown on undocumented immigrants has lowered rent across the country, blaming non-Americans for the increased cost of renting.
For now, the ban has been lifted, though the lawsuit still continues. New York’s attempt to stop landlords from possibly coordinating together under a shared algorithm via RealPage has been allegedly too broad. Lawmakers will need to lay out stronger evidence that property owners really are working in cahoots using AI to overcharge renters if they want to win the case.