Dive Brief:
- New Jersey lawmakers are mulling two bills that target landlords’ use of algorithmic pricing to set rents, as well as other legislation to improve housing affordability for renters.
- Assembly Bill A3497 targets coordinated algorithmic pricing under the state’s antitrust law and “prohibits facilitation of agreements among rental property owners who restrict competition with respect to residential dwelling units.” It was referred to the Assembly Appropriations Committee on March 9.
- Assembly Bill A3507 defines an "unconscionable rent increase" for a property and allows eviction records to be excluded from public access in certain circumstances. The Assembly overwhelmingly passed the bill on Monday.
Dive Insight:
The algorithmic pricing bill, sponsored by Assemblywoman Yvonne Lopez and Margie Donlon as well as Assemblyman Chigozie Onyema, targets the use of third-party software platforms that collect nonpublic rental information from multiple landlords. Lopez said in a March 9 release that the measure would help ensure renters have protections and that the market operates in a way that works for everyone.
“If we want to make New Jersey more affordable, we need to ensure renters aren’t getting priced out of their homes. When rent increases dramatically without clear justification, it can destabilize families and entire communities,” said Lopez in the release.
In her March 10 address, New Jersey Gov. Mikie Sherrill pledged to sign the proposals into law if they advance to her desk, NorthJersey.com reported, saying that she supports legislation “limiting this kind of for-profit surveillance by Big Tech.” On Monday, the New Jersey Senate Commerce Committee advanced another measure that would restrict technology designed to customize prices based on people’s shopping behavior.
The governor’s Fiscal Year 2027 budget proposal said that New Jersey faces a severe housing shortage, and both housing and rent prices have skyrocketed in recent years. To that end, the “Governor will also champion legislation that cracks down on rent-setting algorithms to fight digital collusion.”
New Jersey Apartment Association Executive Director and CEO David Brogan said that the organization supports the governor's efforts to promote a competitive marketplace, Homes.com reported.
"We just need to be careful that the language of the bill does not create additional litigation costs or an environment that disincentivizes companies from entering the New Jersey market," Brogan said. "Given the state’s clear housing supply and affordability challenges, we’ll continue working with policymakers to protect a fair, competitive environment while supporting a healthy multifamily market.”
The New Jersey legislature is also considering several other bills aimed at helping tenants.
A350 would extend the time period during which certain senior citizens and tenants with disabilities can remain in their homes if a building is converted to another use, with the goal of reducing displacement. S219 would create rules for how credit history can be used when people apply for affordable housing, with the goal of preventing applicants from being denied solely because of past financial problems that may not reflect their ability to pay rent.
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