Contributor: Rent algorithms aren't the issue. California just needs more housing

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The cost and availability of housing remain among the most pressing concerns for Californians navigating economic uncertainty.Yet some Golden State cities are channeling energy into a policy experiment that risks making the housing affordability crisis worse.In Santa Ana, city officials recently approved an ordinance to ban the use of rent-pricing algorithms — software that analyzes data used by property managers to understand the market and consumer preferences.

Politicians parroted unfounded claims of price-fixing and claimed to be protecting renters.Under the measure, landlords would be prohibited from using software tools that help recommend rental rates appropriate for market conditions.The ordinance passed despite warnings from critics that it is predicated on a misunderstanding of what these tools actually do and could invite litigation.Recent city ordinances in San Francisco, San Diego and elsewhere targeting pricing software reflect a trend of blaming technology for high rent, even though both state and federal guardrails already exist that govern data use and prevent pricing coordination.At best, blaming technology that helps property managers deflects from the real issue.

The problem is an acute shortage of housing.History and economic evidence are abundantly clear — when supply lags behind demand, prices rise.Want to lower prices instead? Then increase supply: Build more housing.Yes, the housing market is large, dynamic and complex.

But one fundamental reality is inescapable: Onerous levels of regulations in California have been an ongoing obstacle to the housing supply that Californians need.Often, politicians’ push to pile on even more regulations, like targeting software or pursuing rent control, is done in the name of promoting affordable housing and protecting renters and others with lower incomes.But interestingly, any new housing that is built helps al...

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Publisher: Los Angeles Times

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