Landlords Unleash AI to Spike Rental Prices: California's Not Having It
So, you’re scrolling through apartment ads and thinking, “Wow, Rent Street is looking more like Rip-Off Row!” Well, don’t adjust your Wi-Fi connection; there’s an algorithm at work here! Thanks to software companies like RealPage, it seems landlords across California have turned their properties into cash cows by setting rent prices with a sprinkle of artificial intelligence magic. And like every bad plot twist, it’s definitely not in the renter’s favor.
Federal prosecutors are shaking their fists at RealPage, claiming they’ve turned into a rent-enriching monster that’s enjoying a gourmet feast at the expense of regular, hard-working folks just trying to keep a roof over their heads. The primary accusation? They’re sharing proprietary lease information that’s been dubbed an “unlawful information-sharing scheme.” In simpler terms, one big landlord party is definitely not good for anyone else.
In a heroic move of anti-tech defiance, our very own San Diego city council is jumping on the bandwagon to ban the use of this price-slicing software. Join them, San Francisco, which went full rogue back in July with the nation’s first-ever ordinance against algorithms managing rent prices. If only these brave legislators could also create a bill banning unsolicited avocado toast proposals while they’re at it.
But it’s not just about local legislatures flexing their muscles! A coalition of California lawmakers and seven other states has attached themselves to a federal antitrust lawsuit targeting RealPage. Notable California figures like Attorney General Rob Bonta have come out swinging, claiming that the software’s magic wand effectively keeps rents inflated in areas already clobbered by housing shortages. Seriously, who needs enemies when you have algorithm-driven price gouging?
Meanwhile, RealPage is asserting that the real culprit in the housing crisis is the lack of supply, claiming their tech is merely a helpful guide for property managers. Well, that same logic could apply to a GPS telling you to drive into a lake, but let’s not go there.
The icy grip of AI on rental prices has been making waves, with renters like Alan Pickens and his wife moving continuously because they just can’t afford to stay in one place. Imagine that! A couple in the fast-paced tech capital struggling to maintain their lifestyle, all while waiting for developers to sprinkle some magic housing dust to help the rest of the population!
So what’s the verdict? As California leads the charge against algorithmic rent-setting, we watch with bated breath (and perhaps a tinge of ironic joy) as the Great Rental Battle unfolds. Will the AI overlords back off? Or will they keep kicking us while we’re down, struggling to find a decent rate? Either way, grab your coffee and binge this unfolding saga since you might just be metaphorically paying for the privilege—one overpriced drink at a time.
AUTHOR: tgc
SOURCE: calmatters