New York bans AI-enabled rent price fixing, marking the nation’s first statewide action against algorithmic rent-setting tools. The new law, signed by Gov. Kathy Hochul, makes it illegal for landlords to use software that manipulates rental prices—ushering in a new era of digital accountability in the housing market.

A First-Of-Its-Kind AI Housing Law

Governor Hochul’s legislation targets AI-powered software that enables landlords to coordinate rent increases through shared data systems. The move follows a wave of similar bans in major U.S. cities like Jersey City, Philadelphia, San Francisco, and Seattle, but this is the first to apply statewide.

The law comes amid growing criticism of companies like RealPage, which markets pricing algorithms that claim to “optimize rents” by balancing occupancy and profit. Critics argue that these tools effectively fix prices, inflating rental rates and worsening the affordability crisis.

Why New York’s Ban Matters

The decision to outlaw AI-enabled rent price fixing underscores New York’s growing concern over the intersection of housing policy and artificial intelligence. As Gov. Hochul put it, these “private data algorithms” distort the market and harm renters “during a historic housing supply and affordability crisis.”

By banning the use of AI-driven pricing models, New York aims to restore competition and fairness in rental markets. The law not only prohibits setting rental terms through such software but also classifies landlords who use it as colluding, even if they act “with reckless disregard.”

What the Law Actually Says

Under the new policy, property owners and managers who rely on AI tools to determine rent prices can face legal action for engaging in anti-competitive practices. The legislation makes clear that even indirect coordination through algorithms will be treated as unlawful collusion.

This shifts the responsibility onto landlords to ensure pricing is based on fair, competitive practices rather than secretive algorithms trained on market-wide data.

The Bigger Picture: AI Regulation Expands

New York’s move adds momentum to a growing national conversation about how AI is reshaping markets—from housing to healthcare and beyond. As states grapple with how to regulate AI responsibly, New York’s approach could serve as a template for future legislation aimed at curbing algorithmic manipulation in essential industries.

For renters, this law may signal a future where AI transparency and accountability are no longer optional but essential.