Lisa Mailhot | December 5, 2024
Buyers
If you’ve been searching for a place to rent and faced equally steep prices everywhere, you’re not imagining things. Landlords’ use of AI-powered software to determine rent prices is a significant factor behind this trend. These algorithms, developed by companies like RealPage, analyze proprietary lease data to set rents across properties. However, this practice has drawn criticism for artificially inflating prices and making housing less affordable for renters.
Federal prosecutors allege that RealPage’s software facilitates an “unlawful information-sharing scheme,” enabling landlords to maintain elevated rent levels. In response, cities like San Francisco and San Diego are leading efforts to curb the use of such pricing algorithms. For instance, San Diego is drafting an ordinance to ban these tools, mirroring San Francisco’s pioneering legislation.
California, with its high percentage of renters (44% compared to the national average of 35%), is particularly vulnerable to the effects of such practices. Renters in the state already face significant challenges due to the high cost of living. Studies have shown that low-income residents bear the brunt of rising rents, with many spending an increasing portion of their income on housing.
Despite these challenges, RealPage has received substantial investment from entities like California public pension funds, raising concerns about conflicts of interest. Critics argue that such investments inadvertently harm the people these pensions aim to support.
California’s leadership is taking steps to address this issue. Legislative actions are not only focused on banning these AI tools but also on ensuring fair housing practices. The involvement of federal prosecutors and several states in an antitrust lawsuit against RealPage underscores the gravity of the situation.
Navigating the housing market in Orange County can be daunting amidst these rising challenges. Let's connect if you’re looking for a home and want expert guidance in this competitive market. Together, we’ll find the perfect place for you to call home.
In the aftermath of devastating LA wildfires, State Farm has requested a 22% insurance rate hike in California. Discover how this could impact homeowners, why wildfire… Read more
With rental market growth set to hit $5.35 trillion globally by 2025, investors can boost returns by diversifying portfolios, leveraging tech, and adopting proactive m… Read more
Baby boomers are holding tight to their real estate and assets, delaying the long-anticipated "Great Wealth Transfer." Learn how this affects millennials, Gen Xers, an… Read more
New-home sales defied expectations in December, rising 3.6% despite mortgage rates hovering around 7%. With builders offering incentives and inventory rising, now migh… Read more
As cities struggle with rising rents, micro-units are emerging as a practical solution for affordability and quality living. These compact, well-designed apartments of… Read more
Extreme weather is driving up home insurance premiums, with costs soaring 33% in recent years. Discover how climate risks are reshaping real estate markets, from risin… Read more
Michael Jordan's iconic Highland Park mansion, Champions Point, is now available for co-ownership starting at $1M. This unique opportunity offers luxury amenities, com… Read more
L.A. wildfires in January 2025 have put over $40 billion in real estate at risk, highlighting housing shortages and displacement concerns. Discover how these events im… Read more
Discover five powerful tax-saving strategies that could help you legally save over $20,000 on your taxes. From maximizing retirement contributions to leveraging HSAs a… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most