Mayor Ravi S. Bhalla and the City of Hoboken today announced that the administration will seek to introduce an ordinance to outlaw the use of algorithmic rent-setting software in the local rental housing market at the June 4 City Council meeting. The proposed legislation comes in response to a recent 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.
The proposed ordinance would make it unlawful for landlords renting residential dwelling units in Hoboken to engage in price-fixing through algorithmic rent-fixing. The ordinance defines algorithmic rent-fixing as the use of software, algorithms, or data-sharing platforms to coordinate, recommend, or implement rental prices, lease terms, or occupancy levels among competing landlords. This law would apply to all residential rental units in Hoboken, excluding medical, long-term care, or detention facilities.
Penalties for violations may include imprisonment for up to 90 days, fines up to $2,0000, or community service for up to 90 days.
“We are not going to stand by while algorithms manipulate rental prices and dictate whether Hoboken’s families can afford to live in our city,” said Mayor Bhalla. “My administration is taking action to ensure our housing market is fair, transparent, and accessible. This ordinance is a clear sign that we will not tolerate exploitative rent-setting practices in our community. I encourage the council to consider supporting this ordinance and I look forward to their partnership as we work to protect our renter community from irresponsible landlords.”
The ordinance will be introduced at the June 4 regular City Council meeting, in City Council Chambers at 94 Washington St. at 7 p.m.
