Apartment hunting in NYC just became a tad simpler.
Not only have broker fees been eliminated, but new legislation just went into effect that forbids landlords and management companies from making a particular sneaky move.
If you’re on the hunt for your dream place in your dream neighborhood, you can breathe a sigh of relief knowing that Legislation (S7882/A1417-B) — its formal title — is looking out for renters’ wallets. We’ll tell you what you need to know.
Governor Hochul signs a bill forbidding algorithm software to set rents
On Thursday, October 16th, New York Governor Kathy Hochul signed a bill into law that bans collusion using algorithm-enabled rent price fixing in New York state.
According to a statement from the Governor’s office, new data suggests that price fixing algorithms ultimately cost renters nationwide an estimated $3.8 billion more in inflated rents last year. We’re happy to cut unnecessary costs as much as possible here in NYC, especially as rents reached a record high this summer.
“It’s already too hard to be a renter in New York, and we cannot allow exploitative technology make it any harder,” State Senator Brad Hoylman-Sigal said in a statement.
He continued, “This legislation will update our antitrust laws to make clear that rent price-fixing via artificial intelligence is against the law and ensure there are boundaries against behaviors that the federal government has found lead to anticompetitive practices and price fixing.”
Additionally, this legislation is a record-breaking one: it makes New York among the first states in the country to address rent price fixing collusion from these software services, most of which boast that they can help owners get ahead in the market.
“We are leveling the playing field for tenants, giving New Yorkers greater access to affordable apartments and declaring this unfair, anti-competitive practice as unlawful collusion, once and for all,” added Assemblymember Linda B. Rosenthal.
You can learn more about the bill on the New York State Senate website.