Hoboken City Council Unanimously Passes Resolution Calling Upon the State Legislature to Enact Legislation Banning the Use of Algorithmic Systems on the Price and Supply of Rented Residential Dwelling Units

For Immediate Release:

Dated: July 11, 2024

Contact: Hoboken Councilman Phil Cohen (201) 705-6357

The Hoboken City Council yesterday unanimously called on State legislators to pass legislation banning the use of an algorithmic system by two or more landlords in order to recommend or set the price and supply of rented residential dwelling units.

Recent national investigations and lawsuits have revealed troubling practices among property management companies that use software to unfairly inflate rental prices. According to reports, property managers share real-time, non-public price and lease information with property technology companies, which in turn use algorithms to recommend rents for large portions of the market, effectively suppressing competition and driving up rental prices. One leading property technology company has boasted that its rent-pricing software enables landlords to “outperform the market” by 2-5%. These practices are unacceptable and contribute to the growing financial strain on Hoboken residents, making it harder and harder for Hoboken families to stay in their homes and continue living in the Mile Square City.

Hoboken Councilman Phil Cohen sponsored this resolution and stated: “I am committed to shedding light on these unscrupulous practices and working to ensure that all Hoboken residents and workers have access to safe and affordable housing.” Cohen added, “The Hoboken City Council is calling on New Jersey legislators to pass legislation banning the use of these algorithmic systems that are driving tenants out of their homes.”

Council Member Emily Jabbour who co-sponsored this legislation added: “It is clear that use of this predatory software is leading to the artificial inflation of rent levels in Hoboken. I am glad to see Hoboken’s City Council has a united voice with our colleagues in Jersey City to ask the State Legislature to ban its use to prevent exploitation of tenants.”

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Hoboken’s City Council joins Jersey City’s governing body in calling for the New Jersey Legislature to take decisive action after Jersey City adopted similar legislation introduced by Jersey City Council Member James Solomon. A link to the Hoboken City Council resolution is here.