St. Paul, MN - Today, legislators in the Minnesota House and Senate introduced House File 1142, legislation to ban the use of rent-fixing algorithms, joining municipal and federal efforts across the country. The bill, introduced by Rep. Michael Howard (DFL - Richfield) and Sen. Lindsey Port (DFL - Burnsville), would ban rent-setting algorithms, like RealPage and Yardi, to prevent landlords from artificially using shared data to inflate rents.
“Across the state, Minnesota renters have been telling us loud and clear - the rent is too damn high - and they’re right,” said Rep. Howard. “Corporate landlords that are conspiring to jack up rents, purely to pad their excessive profits, must be stopped. Cracking down on this type of corporate greed is an important way we can continue to make the dream of home more affordable for all Minnesotans.”
By promoting significant rent hikes — sometimes by double digits in major metropolitan areas — these algorithms contribute to higher eviction rates, the consolidation of local housing markets, and the rise of monopolistic landlords and property management companies.
“Housing isn’t a commodity like a computer or car; it is the foundation of a safe, healthy life,” said Sen. Port. “Rent is already too high across Minnesota, and this legislation would make sure renters aren’t being squeezed for every penny they earn just to stay housed. Property owners should make thoughtful decisions about when to increase rent when appropriate, but companies like RealPage use AI to artificially inflate the market price of housing. As AI becomes more entrenched in every industry, it’s time for lawmakers to take a close look at how it can make Minnesotans’ lives better — and prevent corporations from misusing AI to boost their profits at Minnesotans’ expense.”
Rent prices in the Twin Cities Metro Area increased by an average of $27 per month due to rent pricing algorithms. RealPage is used in 15% of multifamily rental properties in the Metro Area, but in areas like Dinkytown, it dominates the rental market, drastically increasing rents over the past few years.
“I’m a first-generation, financially independent college student and housing is by far my greatest expense,” said Jacob Richter, a student at the University of Minnesota. “Prices are unpredictable and inconsistent. Even within my own apartment, my roommates and I pay different amounts for identical rooms because landlords and property managers manipulate pricing based on lease signing dates. The rates change arbitrarily, and students—who don’t have the time, expertise, or financial flexibility to negotiate—are left scrambling. We need lawmakers to protect students from these exploitative pricing practices.”
Minnesota Attorney General Keith Ellison has joined the U.S. Department of Justice and attorneys general from seven states in a lawsuit against RealPage Inc., alleging the company's algorithmic pricing scheme violates antitrust laws and harms renters by inflating apartment prices.
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