Tenant advocates and city officials say AI-driven rent pricing tools, such as RealPage, unfairly inflate rental prices, making housing less affordable.
PORTLAND, Oregon — A proposed ordinance before the Portland City Council seeks to ban the use of artificial intelligence software in setting rental prices, with supporters arguing that the technology threatens to destabilize the city’s housing market.
Tenant advocates and city officials say AI-driven rent pricing tools, such as RealPage, unfairly inflate rental prices, making housing less affordable for low-income residents. Councilor Angelita Morillo, who introduced the ordinance, said the practice harms renters while benefiting large property owners.
“Everybody hurts and everybody loses except for RealPage and companies that are using these types of algorithms to price fix,” Morillo said during a public hearing Wednesday.
RealPage was sued by the U.S. Department of Justice in 2024 for allegedly engaging in an unlawful scheme to reduce competition among landlords.
Travis Notting, a local tenant organizer, said renters in Portland are feeling the strain of rising costs.
“As I go out and talk to renters every day, the number one problem on all of their minds is that their rent is too high,” Notting said.
He believes AI pricing tools encourage landlords to set artificially high rent levels.
“I think one of those issues is the fact that there is a lot of collusion among landlords to keep the base minimum rent higher and higher and higher,” he added.
During the public hearing, opponents of the ordinance say it would create unnecessary regulatory hurdles, particularly for smaller landlords.
“Property managers represent different owners, they might represent two different owners on different sides of the street, and you are actually asking them to put on blinders while setting rent, even though that is basically impossible,” said Marcel Gesmundo, who represents Multifamily NW, a property management association.
Others, however, contend that banning AI-driven rent pricing is a necessary step to protect renters and promote fair competition.
“I know there are a number of regulatory burdens that landlords face, and having to avoid violating the Sherman Anti-Trust Act by conspiring with your fellow landlords is a very modest burden,” said Albert Fox Cahn of the Surveillance Technology Oversight Project.
