Portland has taken a definitive stance against AI-assisted rent price fixing, with the City Council voting to update its Affordable Housing Code to prevent landlords from using artificial intelligence to help set rent prices. The ordinance, which saw an 8-2 vote in favor, was announced in a meeting with two councilors absent. District 3 City Councilor Angelita Morillo highlighted the importance of the amendment, stating to KATU, "We know that there are countless units in the City of Portland that are operated by these algorithms that do price fixing, and we owe it to renters and people in our community to do every single thing that we can to change housing affordability."
This ordinance comes in the wake of a larger action against AI-driven rent-fixing practices. Recently, a multi-state lawsuit against property giant Greystar resulted in a $7 million settlement, with allegations that their use of RealPage's software contributed to anticompetitive rent pricing in Portland's rental market. As per an article by KOIN, this lawsuit has propelled legislative action and public outcry, leading to Portland’s proactive response.
Greystar's significant presence in Portland's housing market, with approximately 19,000 units as stated by the Portland Business Journal coverage, underscores the impact of this ordinance. Protesters and housing advocates have praised the city council's decision as a forward step toward fair housing. One such advocate, Gilbert, said that they were among many who rallied to sway the council's vote, reflecting a community's demand for change.
Tammy Carpenter, who is running for Oregon’s House District 27, has been strongly pushing for stronger tenant protections and statewide rent control. Her message aligns with the city’s recent actions. The new ordinance will take effect 90 days after the council’s Wednesday meeting. As Portland adjusts to these changes, it’s still unclear how landlords and the housing market will react to the new rules limiting the use of AI for setting rent prices, as per Portland Business Journal.
