Seattle set to ban algorithmic rent fixing

The Seattle City Council is preparing to vote on legislation that would prohibit landlords from employing “algorithmic rent fixing,” a practice that critics argue enables collusion and inflated rents. The proposed ban includes an amendment allowing successful plaintiffs to recover their legal fees when taking action against offenders. This initiative follows a lawsuit filed by State Attorney General Nick Brown against RealPage and several large landlords, alleging they conspired to raise rental prices through price-fixing techniques. The council's analysis suggests that the ban could enhance rental affordability, particularly benefiting vulnerable communities historically underrepresented among tenants. Specific landlords named in the lawsuit include Greystar, Cushman & Wakefield, and UDR, among others.

Although the precise effect on rents remains unclear, the legislation aims to foster a more competitive rental market. The council will conduct the vote on Tuesday afternoon, marking a significant step in addressing housing affordability issues in Seattle. This move reflects the city's ongoing efforts to regulate the rental housing market amid growing concerns over rent inflation.