Senator Sasha Renée Pérez (D-Pasadena) has introduced Senate Bill 52, the “End AI Rent Hikes Act”, aimed at preventing the manipulation and unfair increase of rents through the use of artificial intelligence (AI) algorithms.
The bill responds to growing concerns about the impact of AI on housing affordability. The U.S. Department of Justice filed an antitrust lawsuit in 2024 against a Texas-based property management software company. The lawsuit alleged the company collected and exploited landlords’ competitively sensitive information, leading to inflated rents. This action highlighted concerns about AI’s influence on housing market fairness.
SB 52 seeks to ban AI-driven rent-setting algorithms, which some experts believe are contributing to the current housing crisis. A 2024 report by the White House Council of Economic Advisers estimated that AI-driven rent-setting tools increased rental costs by $3.8 billion in properties where they were used. Experts warn that continued use of these tools could worsen housing instability for low- and middle-income renters.
Senator Pérez’s bill aims to ensure rental prices are not artificially inflated by algorithms that may prioritize profit over fairness.
