LA Moves To Regulate Rent-Setting AI

LOS ANGELES, CA — In a unanimous vote, the Los Angeles City Council instructed housing staff to report on policy recommendations related to regulating algorithmic rent-setting and artificial intelligence technologies that are being used by housing providers.

On Oct. 13, Councilwoman Eunisses Hernandez introduced a motion calling for regulatory safeguards, transparency requirements, registration programs and dedicated funding mechanisms to ensure that emerging technologies do not negatively impact renters and housing stability.

"Colleagues, families are stretching every single penny just to pay rent, and at the very same time, corporate landlords are increasingly adopting emerging technologies, also known as artificial intelligence, to set rent prices and manage vacancies," Hernandez said during Friday's City Council meeting.

"The simple truth is that the city's in the dark," Hernandez added.

She explained the city does not have mechanisms in place to track the impact of AI rent-setting technology on the local rental housing market.

`We must govern responsibly, but we can't do that while flying blind," Hernandez said, who thanked Councilwoman Heather Hutt for introducing a motion last year to address the same issue. Hernandez also thanked council members Marqueece Harris-Dawson, Monica Rodriguez and Imelda Padilla for seconding her motion.

"To be clear, with this motion, we are gathering information, so we can govern responsibly and in the bets interest of our city and our constituents," Hernandez said.

According to the motion, artificial intelligence and algorithmic pricing technologies are increasingly being used by landlords for rental pricing, occupancy management, leasing decisions and property operations. Recent federal enforcement actions and local government responses have raised concerns regarding the potential impacts of such technology on housing affordability, market competition and tenant stability.

The U.S. Department of Justice, joined by California and other states, filed an antitrust lawsuit in August 2024, alleging that algorithmic rent- setting software utilized nonpublic market information that reduced competition and contributed to higher rental prices.

Some jurisdictions in California, such as San Diego and San Francisco, have adopted measures restricting or regulating certain algorithmic rent- setting prices.

The council instructed the Housing Department, chief legislative analyst, city administrative officer and city attorneys to report on the following:

— A registration and disclosure program for multifamily housing providers using algorithmic rent-setting or revenue management software;

— Notification requirements for prospective and current tenants when rental rates, lease renewals or occupancy decisions are influenced by artificial intelligence or algorithmic pricing systems;

— The city's legal authority to regulate, restrict or prohibit the use of algorithmic rent-setting technology that rely upon nonpublic competitor information;

— The establishment of annual registration, licensing or administrative fees associated with the use of such technology, including projected revenues and implementation costs;

— The creation of a special fund to receive revenues generated through any adopted registration, licensing or enforcement program;

— Eligible uses of such funds, including eviction prevention services, emergency rental assistance, tenant legal services, fair housing enforcement, tenant outreach and education, and other housing related services; and

— An analysis of current regulatory practices in other municipalities such as Berkeley and West Hollywood, an update on the Department of Justice's lawsuit, as well as a review of a settlement between Nevada and RealPage. In September 2025, Nevada secured a settlement with RealPage over alleged rent price-fixing and agreed on new data-use limits.

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