Jersey City just banned landlords from using AI to sent rent a first for the Garden State

Jersey City landlords are going to have to set rent the old fashioned way.The Jersey City Council voted unanimously on Wednesday to ban the use of AI-driven, rent-setting software by landlords.The ordinance, introduced by Councilmember James Solomon, is the first of its kind in the Garden State. The amended ordinance makes a code violation out of use of tools from rental software firms like RealPage or Yardi Systems.

Advocates of the ordinance claim these tools help landlords and property management companies to artificially inflate rents and constrain supply.Solomon, in a statement provided to The Post, called the move a “bold stand” against rent collusion.“With the passage of this first-in-the-state legislation, we are putting corporate landlords on notice: if you’re using software like RealPage to coordinate rent hikes, you’re breaking the law — and now, tenants and the city have the tools to hold you accountable,” the statement said.Enforcement of code violations includes the ability for residents to sue landlords or submit complaints to the city over the use of algorithmic rent-setting, according to Solomon.Detractors of the new ordinance say the measure fails to address the root of the problem — a lack of new housing supply.Others argue that the language of the bill is overly broad and could lead to unnecessary penalization for property owners, Gothamist reported. Jersey City has a documented affordability problem.

Rent prices in the city have increased by 50% since 2015, according to a 2024 report by the nonprofit Regional Plan Association.The city was the country’s third most expensive city to rent in April, according to Zumper, right after New York City and San Francisco. Proponents of the new ordinance pin the problem, in part, on landlords’ use of AI-driven tools to raise rents.These tools, according to the bill, aggregate local prices, supply levels, occupancy rates and lease details.

The information allows landlords to boost pr...