According to HousingWire, New Jersey Governor Mikie Sherrill recently signed the FAIR Act, making New Jersey the fourth state to ban algorithmic rent-setting software. The law targets tools that pool nonpublic data like rental rates, occupancy levels, and lease terms from multiple landlords to recommend pricing strategies. The governor framed this as stopping landlords from effectively colluding on rent increases rather than competing fairly with one another. The legislation takes effect on July 1, 2027, giving landlords about a year to determine whether their pricing software complies with the new restrictions.
This regulatory push didn't start in legislatures but in courtrooms. Renters filed class-action lawsuits against RealPage and major property management companies, alleging they used algorithmic tools to coordinate rent hikes. Those legal battles have been costly for landlords, with Greystar and twenty-five other firms paying over $141 million in settlements. The U.S. Department of Justice also pursued antitrust litigation against RealPage and large landlords, leading to additional settlements. In New Jersey specifically, the state attorney general filed suit against RealPage and ten of the state's largest landlords, and that ongoing case helped build momentum for the FAIR Act.
New Jersey isn't alone in this approach. New York, California, and Connecticut all passed similar statewide bans last year. Beyond state action, cities including San Francisco, Philadelphia, Jersey City, Minneapolis, San Diego, and Hoboken have already enacted local-level restrictions on algorithmic pricing. Jersey City itself passed its version in May 2025, months before the state acted. This wave of legislation reflects growing concern among elected officials and renters that these tools are contributing to affordability challenges.
The FAIR Act specifically doesn't cap rents or require landlords to lower prices. Instead, it restricts only software designed to facilitate coordination among competing property owners. The law allows ordinary business tools like spreadsheets and public rent databases to continue operating. New Jersey's attorney general will establish an online portal where renters can report suspected violations of the new rules.
This legislative action fits into Governor Sherrill's broader housing affordability agenda. Her recent $60.7 billion budget increased funding for first-time homebuyers and created a new homelessness fund. The state also established a Housing Governing Council to streamline approvals and cut through bureaucratic delays, while expanding a technical-assistance program helping municipalities identify zoning barriers to new construction. These initiatives work together to address what the governor sees as a housing crisis driven partly by these pricing algorithms.
What I am seeing locally here in the Bay Area and across the East Bay is that renters and advocates are paying close attention to how other states tackle these algorithmic pricing issues. California already has its own ban in place, so our market has some protections, but enforcement and awareness remain challenges for renters who suspect unfair pricing practices. Whether these state-level restrictions actually bring down rents will be something we're all watching carefully over the next few years, and it could influence how buyers and sellers think about the investment side of residential real estate.
