Mayor Ravi S. Bhalla today announced the City of Hoboken has outlawed the use of algorithmic rent-setting software in the rental housing market, following the adoption of the Administration’s legislation by the City Council during its July 9 meeting. It will now be illegal for landlords renting residential units in Hoboken to engage in price-fixing through algorithmic rent-fixing, meaning they can no longer use software, algorithms, or data-sharing platforms to coordinate, recommend, or implement rental prices, lease terms, or occupancy levels among competing landlords.
“Every Hoboken resident deserves access to a fair and competitive housing market, free from manipulation by secret algorithms or corporate collusion,” said Mayor Bhalla. “This new law sends a clear message: we will not tolerate artificial rent inflation that puts profit over people. By protecting transparency and restoring market integrity, we are standing up for renters and preserving the character of our community. I thank the City Council for working with me to adopt this common sense measure.”
The new legislation comes after an April lawsuit, filed by the New Jersey Attorney General against RealPage, Inc. and 10 of the state’s largest landlords, including AvalonBay Communities and The Bozzuto Group, both of which operate large residential properties in Hoboken.
The lawsuit alleges that RealPage’s revenue management products were used to facilitate a price-fixing conspiracy that unlawfully inflated rents and eliminated competitive pricing in the multifamily rental housing market. According to the Attorney General, this software enabled landlords to coordinate rental rates and occupancy decisions, creating an artificial system of rent inflation rather than allowing market forces to dictate pricing.
Hoboken has been directly affected by this alleged scheme as several properties are managed by defendant companies and tenants at these properties have reported substantial rent hikes dating back to 2023, including increases of 20 to 30 percent.
To learn more about the newly adopted legislation, Click Here.
