2024-07-31 18:06:03
San Francisco is the first U.S. city to ban the use of artificial intelligence software to set rent prices, with its Board of Supervisors unanimously approving a ban on the use of algorithms to maximize the rent that landlords charge.
Your landlord might use artificial intelligence to set your rental price; or rather, raise your rental price or even keep the unit vacant because the algorithm says it will be more beneficial to them in the long run. picture. Here’s what The New York Times found in a recent analysis An artificial intelligence software company called RealPagewhich plots numerous lawsuits The software is accused of facilitating collusion and price gouging. The software is being used by some of the city’s largest residential property owners, including Brookfield Properties, Greystar, Equity Residential and UDR, Inc., according to SF Supervisor Aaron Peskin’s office.
But they won’t be using it for much longer. Bay City News reported that the SF Supervisory Board unanimously approved Artificial Intelligence rental pricing software is prohibited On Tuesday, San Francisco became the first U.S. city to do so.
“Banning automated pricing will allow the market to work and lower rents in San Francisco,” Peskin, the measure’s author, said in a statement after Tuesday’s vote. “We want to put more units on the market. Let’s be clear: RealPage aggravates us rent crisis and empowers corporate landlords to deliberately keep units vacant, so we are taking action locally to ensure our working renters can afford to live here.
RealPage has a product called YieldStar that uses data analytics to compare competitors’ rental prices to suggest a maximum price for a unit. The company claims in marketing materials that its software can help landlords “outperform the market by 3% to 7%.”
According to the examiner, RealPage declined the invitation Peskin’s ban was debated at a Board of Supervisors committee meeting. But instead, the company sent a lengthy six-page packet refuting the accusations against it.
“RealPage revenue management software accounts for a much smaller share of the rental market than falsely claimed,” the company said in the packet. “Contrary to the incredible allegations about RealPage’s purported market power, the actual data It shows that the penetration of RealPage revenue management software is low and it is unlikely to support conspiracy to manipulate prices or collusion through this software.”
The regulator’s ban on the software has not yet taken effect. The measure requires a second reading and vote for approval, with regulators now on summer recess throughout August. The second vote could therefore take place as early as Tuesday, September 3.
related: Data again shows pandemic exodus happening in reverse, with everyone returning to San Francisco [SFist]
Image: Josh Heald via Unsplash
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