San Francisco seeks ban of software critics say is used to inflate rents
San Francisco plans to ban property management software like RealPage, accused of inflating rents and harming competition. The ordinance will be finalized on September 3 before being presented to the mayor.
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San Francisco is moving to ban property management software that critics claim is used to artificially inflate rents and stifle competition. The proposed ban, led by Board of Supervisors President Aaron Peskin, aims to address the role of such software in driving up housing costs, not only in San Francisco but across the U.S. The ordinance targets companies like RealPage, which provides algorithms that suggest rent prices based on shared data among landlords. Critics argue that this practice has led to significant rent increases, higher vacancy rates, and increased evictions. RealPage has defended its software, stating it helps both landlords and renters, and attributing rising rents to broader issues like housing shortages and inflation. The ordinance is set for final approval on September 3, after which it will be presented to Mayor London Breed for her decision. Similar lawsuits against RealPage have been filed in other jurisdictions, alleging that its practices contribute to inflated rental prices and unfair market conditions.
- San Francisco is proposing a ban on property management software linked to rent inflation.
- The ordinance targets companies like RealPage, which uses algorithms to set rental prices.
- Critics claim the software has led to significant rent increases and higher eviction rates.
- RealPage defends its practices, attributing rising rents to broader market issues.
- The ordinance is scheduled for final approval on September 3 before going to the mayor.
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San Francisco to ban software that "enables price collusion" by landlords
San Francisco's Board of Supervisors approved a ban on software facilitating price collusion among landlords, targeting RealPage and Yardi, amid concerns over rising rents and vacancy rates.
San Francisco Moves to Ban Anti-Competitive Rent Software
San Francisco plans to ban software enabling landlords to collude on rent prices, targeting Yardi and RealPage, to combat automated price-fixing and improve housing affordability amid rising rents.
Algorithmic price-fixing of rents is here
RealPage's software may enable algorithmic price-fixing among landlords, raising antitrust concerns and impacting housing affordability. Current laws struggle to address this, while legislative updates progress slowly.
32 commentsI'm under the impression this would be clearly illegal if all these rental companies got in a room with some pencils and calculators and binders full of price data to do the same thing. Why is it different if they do that via a middleman?
That said, SF's sky high rents are largely due to decades of anti-growth policies that have prevented building enough housing to meet demand.
Yep. I do wonder how much the finger-pointing at companies like RealPage is an attempt to distract people from the actual reasons why real estate is so expensive here.
That being said, if RealPage and others are essentially helping landlords do price-fixing, they do need to face consequences, along with the landlords using their services.
https://www.politico.com/news/2024/07/12/justice-department-...
“Hm this software we pay lots of money for says we could be charging more money? No no, let’s ignore this suggestion for the good of our tenants”
Are there certain key details that that the software and its back-end can share that enable price fixing better than open listings?
If tenants were hard to get, looking at nearby listings would motivate the landlord to go cheaper. (I do understand that the platform in question encourages compliance with the recommended pricing.)
When the market conditions favor landlords, they have no reason to compete, though, no matter how they get wind of prices.
(Oh, but, wow! San Francisco is really socking it to the housing problem here with this ban they are seeking, yay!)
"it's those greedy landlords fault"
I wrote this article about the wider phenomenon of memes and collusion in public markets:
Is this sentence clear for a native speaker of English?
I read the article and as far as I understand there is software that makes it that rents are high and SF wants to ban it.
Now when I carefully parse the words it makes sense (~ "SF seeks to ban some software, and this software is criticized for making rents high")
Was the title clear and understandable to you after a single pass?
San Francisco to ban software that "enables price collusion" by landlords
https://news.ycombinator.com/item?id=41133143
San Francisco to Ban Rent-Setting Software Amid Gouging Worry
Some more discussion: https://news.ycombinator.com/item?id=41133143
Algorithmic price-fixing of rents is here
And just like that, the USSR was magically reconstituted.
I mean this might help a little bit but if demand exceeds supply it won't help much.
San Francisco to Ban Rent-Setting Software Amid Gouging Worry - https://news.ycombinator.com/item?id=41163936 - Aug 2024 (48 comments)
San Francisco Moves to Ban Anti-Competitive Rent Software - https://news.ycombinator.com/item?id=41155792 - Aug 2024 (7 comments)
San Francisco to ban software that "enables price collusion" by landlords - https://news.ycombinator.com/item?id=41133143 - Aug 2024 (17 comments)
Hoping to cut San Francisco rents, supervisors approve software-pricing ban - https://news.ycombinator.com/item?id=41125232 - Aug 2024 (1 comment)
Why US renters are taking corporate landlords to court - https://news.ycombinator.com/item?id=40261647 - May 2024 (110 comments)
Rents are soaring. Is RealPage to blame? - https://news.ycombinator.com/item?id=39992731 - April 2024 (207 comments)
Lawmakers Seeking to Outlaw Rent Price Fixing Reported by Propublica - https://news.ycombinator.com/item?id=39206493 - Jan 2024 (56 comments)
Big landlords used software to collude on rent prices, DC lawsuit says - https://news.ycombinator.com/item?id=38114264 - Nov 2023 (375 comments)
The rent is too damn algorithmic - https://news.ycombinator.com/item?id=37829575 - Oct 2023 (147 comments)
Landlord Software Is Making Life Hell for Renters, Report Says - https://news.ycombinator.com/item?id=35786820 - May 2023 (17 comments)
I saw RealPage's crappy rent-jacking-up software so you don't have to - https://news.ycombinator.com/item?id=34926683 - Feb 2023 (403 comments)
DOJ will examine whether RealPage helped landlords coordinate rent increases - https://news.ycombinator.com/item?id=33744136 - Nov 2022 (123 comments)
RealPage and landlords illegally created a 'cartel' to set prices, lawsuit says - https://news.ycombinator.com/item?id=33633541 - Nov 2022 (3 comments)
US senator seeks antitrust review of apartment price-setting software - https://news.ycombinator.com/item?id=33444092 - Nov 2022 (6 comments)
Lawsuit filed against rent-setting software RealPage - https://news.ycombinator.com/item?id=33317414 - Oct 2022 (50 comments)
Clever algorithm may be what's driving rent prices so high - https://news.ycombinator.com/item?id=33313028 - Oct 2022 (6 comments)
Rent going up? One company’s algorithm could be why - https://news.ycombinator.com/item?id=33224502 - Oct 2022 (279 comments)
Landlords use software to set rental rates - https://news.ycombinator.com/item?id=3294248 - Nov 2011 (5 comments)
No, it does.
I'm sure it took work to build a database of rents in America for RealPage. But then they got customers to contribute their own data too, per the article
Related
SF's AI boom can't stop real estate slide, as office vacancies reach new record
San Francisco's real estate market is struggling with a 34.5% office vacancy rate and rent prices at a low since 2015. AI companies lease space, but hybrid work and tech layoffs contribute to vacancies. The market shows signs of improvement amid uncertainties.
California just cut the red tape on housing in San Francisco. Is L.A. next?
California's Senate Bill 423 aims to accelerate housing construction in San Francisco by reducing approval times from two years to six months. The law streamlines permitting processes to address housing shortages statewide.
San Francisco to ban software that "enables price collusion" by landlords
San Francisco's Board of Supervisors approved a ban on software facilitating price collusion among landlords, targeting RealPage and Yardi, amid concerns over rising rents and vacancy rates.
San Francisco Moves to Ban Anti-Competitive Rent Software
San Francisco plans to ban software enabling landlords to collude on rent prices, targeting Yardi and RealPage, to combat automated price-fixing and improve housing affordability amid rising rents.
Algorithmic price-fixing of rents is here
RealPage's software may enable algorithmic price-fixing among landlords, raising antitrust concerns and impacting housing affordability. Current laws struggle to address this, while legislative updates progress slowly.