In Denver, the use of AI-driven software like RealPage for pricing rental apartments has led to significant increases in rent, complicating affordability for tenants. More than 45% of rentals in the area utilize this technology, resulting in monthly rates that are, on average, $136 higher than those set without algorithms. Critics, including housing advocates and Colorado lawmakers, argue this practice could lead to a form of market collusion, prompting the proposal of House Bill 1004 to ban such pricing software. The controversy raises significant questions about transparency and fairness in the housing market.
For renters in Denver, affording a place to live has become harder-and artificial intelligence might be part of the problem.
House Bill 1004 aims to ban software like RealPage from setting or recommending rental prices altogether, sparking debate over tech's role in housing.
A 2024 White House investigation found units priced with RealPage software were, on average, $136 more expensive than those without.
RealPage executives acknowledged their pricing algorithm's impact on rent hikes, raising concerns about potential market manipulation and reduced transparency for tenants.
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