Gov. Mikie Sherrill signed legislation today banning landlords from using algorithms to artificially inflate rents, part of her administration’s effort to lower housing costs and strengthen protections for New Jersey tenants.
“Landlords, who should be competing to provide the best price to renters, are instead colluding to drive prices up through so-called ‘algorithmic pricing.’ That stops now,” said Sherrill. “As we continue our whole-of-government approach to addressing our housing crisis, this legislation is another important step toward making our state more affordable.”
The new law, A3497, regulates algorithmic rent-setting systems to prevent landlords from using software to coordinate rental prices or occupancy levels. It also directs the attorney general to establish an online portal for reporting alleged violations.
The legislation was sponsored by Senate Majority Leader M. Teresa Ruiz (D-Newark), State Sen. Brian Stack (D-Union City), and Assemblywoman Yvonne Lopez (D-Perth Amboy). The Assembly bill sponsored by Lopez was also passed in the last session.
“Companies that feed data into algorithms for landlords to collude and artificially inflate rents are violating our antitrust laws and squeezing tenants in the process. These are not your neighborhood landlord—they are large corporations making money hand over fist and forcing people out of their communities,” said Stack. “Housing is not a luxury; it’s a necessity, and prohibiting the use of this software by landlords to increase rents will help ensure the market remains fair, competitive, and within reach for New Jersey families.”
Ruiz said that unethical rent-setting algorithms used by landlords are “undermining competition and driving up housing costs for New Jersey families who are already struggling to afford groceries, fuel, and childcare.”
“In some cases, renters have been found to pay hundreds of dollars more each year because of artificial price markups,” she said. “Banning this software will help level the playing field, protect consumers, and make housing more affordable.”
Assemblywoman Katie Brennan (D-Jersey City) was also listed as a sponsor, along with Margie Donlon (D-Ocean Township) and Chigozie Onyema (D-Newark).
Brennan made banning rent-setting algorithms a centerpiece of the housing plan she released during her 2025 campaign.
“This type of software recommends identical increases across different properties and neighborhoods, driving up rents and pricing people out of their communities. No one should have to bid against a machine designed to squeeze every last dollar out of them,” said Brennan. “The FAIR Act bans the use of rent-setting algorithms and gives renters a fair shot at an apartment they can afford.”
The bill passed the Assembly along party lines, with only Assemblyman Alex Sauickie (R-Jackson) not voting.
It won bipartisan approval in the Senate, where all Democrats and most Republicans voted in favor. State Sens. Jon Bramnick (R-Westfield), Kristin Corrado (R-Totowa), Joe Pennacchio (R-Montville), and Robert Singer (R-Lakewood) voted against it. Carmen Amato (R-Berkeley), Doug Steinhardt (R-Lopatcong), and Holly Schepisi (R-River Vale) did not vote.