Governor Mikie Sherrill holds a press conference on rental algorithms, followed by signing A3497 into law, a landmark bill that protects renters. Joining the Governor, Executive Assistant Attorney General Sundeep Iyer, Assemblywoman Yvonne Lopez, and 32BJ SEIU Vice President and New Jersey Director Ana Maria Hill | Photo via Office of Governor / Tim Larsen
TRENTON, NJ — New Jersey Gov. Mikie Sherrill on Monday signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act, a landmark measure aimed at curbing the use of rent‑setting algorithms that state officials say have artificially inflated housing costs across the Garden State. The law makes New Jersey the fourth state in the nation to regulate algorithmic rent‑setting systems explicitly.
Sherrill said the measure is part of her administration’s broader push to make housing more affordable. “Housing affordability is one of the defining challenges facing New Jersey, and we’re using every tool available to bring costs down,” she said, adding that landlords “colluding to drive prices up through so‑called ‘algorithmic pricing’… stops now.”
The FAIR Act prohibits landlords from using sensitive data—such as rental prices, occupancy levels, housing supply, and lease termination dates—to coordinate rent increases through algorithmic tools. It also bars landlords from raising rents in parallel using shared software platforms. The law will take effect next summer.
Proponents in the Legislature
The bill gained strong support from Democratic lawmakers in both chambers. Assemblywoman Yvonne Lopez, chair of the Assembly Housing Committee, said the measure was necessary to stop “predatory practices—intentional or otherwise—enabled by technology.” She warned that algorithmic systems “contribute to an increasingly unaffordable housing market, placing undue financial strain on renters.”
Attorney General Jennifer Davenport also backed the legislation, calling it a “much‑needed systemic solution” to protect renters and expand housing opportunity. She noted that New Jersey is already leading a federal lawsuit against RealPage and several large landlords for alleged algorithmic collusion.
Labor groups, including 32BJ SEIU, advocated for the bill. “Our members know better than anyone what the housing crisis looks like, because they’re living it every single day,” said Ana Maria Hill, the union’s New Jersey state director.
Benefits for Renters — and Concerns from Landlords
State officials say renters will benefit from a more competitive and transparent housing market. By restricting algorithmic tools that allow landlords to move “in lockstep” on pricing, the FAIR Act aims to prevent artificially inflated rents and reduce financial pressure on tenants. Sherrill said these tools “stack the deck against renters” and push rents “higher and higher.”
Housing advocates argue the law will help curb rent spikes in already constrained markets. Jersey City Mayor James Solomon welcomed the statewide approach, noting that the attorney general’s office has stronger investigative powers than municipalities to close loopholes and prevent exploitation.
Landlords and industry groups, however, expressed reservations. RealPage, a major provider of rent‑setting software, said it would comply but criticized the restrictions. “There is a need for more housing supply, not restrictions on analytical software,” spokesperson Patrick Mendoza said, arguing that rents fall when more homes are built.
Residents React to the New Law
Residents facing steep rent increases welcomed the measure. Many said algorithmic pricing made it nearly impossible to find affordable housing in their communities. While the Gothamist report did not name specific tenants, it noted widespread concern among renters who felt algorithms were “putting competing landlords on the same team against renters.”
As New Jersey continues to battle rising housing costs, the FAIR Act marks one of the strongest state‑level interventions yet—setting a precedent that could influence national debates over technology’s role in the rental market.
