The Berkeley City Council has postponed actions related to an ordinance banning algorithmic pricing software used by landlords, in order to seek a resolution regarding ongoing litigation with RealPage, the company producing such software. This ordinance aims to prevent price collusion among landlords, which advocates argue leads to higher rents and housing scarcity. Almost 60% of Berkeley's population are renters, with many struggling with housing costs. Despite this ordinance, RealPage has filed a lawsuit against Berkeley, marking the city's unprecedented position in this national debate on housing affordability and algorithmic pricing.
"The postponement action is intended to give the Council time to facilitate a resolution of the RealPage litigation and to determine a path forward for the ordinance without the time pressure imposed by litigation deadlines."
"These recommendations allow landlords to manipulate the market and the practice amounts to illegal price-fixing," the city's Housing Advisory Commission, which sponsored the ordinance, wrote in its March report to the Council.
"The use of algorithmic devices in setting rents and occupancy levels contributes to double-digit rent increases, increased rates of eviction, and artificial housing scarcity."
"The use of these algorithmic devices is widespread in markets throughout the country and has helped fuel the national housing affordability crisis," the commission wrote.
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