New Jersey Bans Algorithmic Rent Pricing

New Jersey Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law on Monday in Newark, making it the fourth state to prohibit algorithmic pricing tools that critics claim enable landlords to collude on rent increases. The law, which takes effect on July 1, 2027, aims to address rising housing costs by preventing landlords from using software to coordinate rents instead of competing. Governor Sherrill stated that landlords are "colluding to drive prices up through so-called ‘algorithmic pricing,’" and that "That stops now." This legislative action follows similar statewide bans enacted in New York, California, and Connecticut last year, as well as a wave of city-level prohibitions in places like San Francisco, Philadelphia, Jersey City, Minneapolis, San Diego, and Hoboken.

The movement against rent-setting algorithms gained momentum following class-action lawsuits filed by renters. These lawsuits accused RealPage, a software provider, and numerous large landlords of utilizing its platform to artificially inflate rents. In October of the previous year, Greystar, identified as the nation's largest landlord, along with 25 other property management companies, agreed to a settlement in a class-action lawsuit, collectively paying over $141 million. Assemblywoman Katie Brennan, who sponsored the bill and represents Jersey City, emphasized the severity of the housing crisis, stating that "corporate landlords are using algorithms to jack up everyone’s rent."

The FAIR Act provides landlords with approximately one year to assess their pricing software and determine if it complies with the new regulations. The legislation is part of a broader effort to improve housing affordability, a key platform for Governor Sherrill during her election campaign. Other officials, including New York City Mayor Zohran Mamdani and Virginia Governor Abigail Spanberger, have also been working on similar housing affordability initiatives, though with varying degrees of legislative success so far. Jersey City had already passed its own local ban on algorithmic rent pricing in May 2025, preceding the statewide legislation.