Gov. Hochul’s new law bans landlords’ use of pricing algorithms, targeting tools like RealPage to ease tenant burdens in a tight housing market.
New York has taken a bold stand against soaring rents, becoming the first state to ban landlords from using AI -driven software to set prices.
Signed by Gov. Kathy Hochul on October 16, 2025, and effective in 60 days, the law targets platforms like RealPage that inflate costs through algorithmic coordination.
With NYC’s median rent at $4,300, per Zillow , this measure aims to curb a crisis costing U.S. tenants $3.8 billion in 2024, as noted in a state press release .
The legislation outlaws software that sets rent or lease terms, labeling its use among landlords as illegal collusion that stifles competition.
Unlike city bans in San Francisco or Jersey City , New York’s statewide rule sets a national benchmark.
A ProPublica report tied RealPage to coordinated price hikes, prompting a 2024 DOJ lawsuit .
“This stops AI from rigging the market against renters,” said Sen. Brad Hoylman-Sigal, per the American Economic Liberties Project.
The law responds to a housing crunch where 50% of New Yorkers are rent-burdened, per NYU Furman Center .
It complements the Good Cause Eviction law, shielding tenants from unfair evictions. Landlords must now disclose software use, with violations risking penalties under state antitrust laws.
Some X users flag the 60-day delay as a potential loophole, but supporters see it as a win for affordability.
Tenants can track local rents on StreetEasy or report price-fixing to the New York AG’s office.
As AI faces scrutiny in pricing—echoed by FTC warnings —New York’s law could inspire states like Texas or Florida to act.
By tackling tech-driven greed, it aims to level the playing field for renters in a market stacked against them.
