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Home » New State Law Bans Landlords from Setting Rents via Algorithms
New Laws & Regs

New State Law Bans Landlords from Setting Rents via Algorithms

Oct 27, 2025
Eileen O'Toole Esq.

New York State has enacted legislation that bans landlords from using certain algorithm-based software to set residential rents, which critics claimed would amount to collusion and price-fixing in violation of antitrust laws. 

On Oct. 16, 2025, Governor Hochul signed into law new General Business Law Section 340-b, making New York one of the first states in the U.S. to target the use of rent-setting software. The bill’s sponsors, Assemblymember Linda Rosenthal and State Senator Brad Hoylman-Sigal, maintained that the use of real estate management software like RealPage, which was the target of a U.S. Justice Department antitrust lawsuit in 2024, uses artificial intelligence to consider market data, including private pricing information provided by real estate companies, and gives landlords access to propriety information such as lease renewal rates in order to inflate rents. 

The new law prohibits companies from knowingly operating platforms that facilitate collusive algorithmic rent-setting, or from doing so with reckless disregard.

New Laws & Regs
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