How San Diego is Tackling Rising Rental Prices Through Legislation Against Algorithmic Price Fixing
San Diego is moving to combat the growing issue of rising rents driven by algorithmic price-fixing in the housing market. A proposal is currently in the works that would ban the use of AI-driven technologies that automatically adjust rental prices based on market data. This practice, which uses algorithms to maximize landlords’ profits, has been widely criticized for inflating rents in an already expensive housing market.
The technology in question monitors various data points—such as demand trends and nearby rental prices—and automatically adjusts rents accordingly, often without taking into account tenants’ ability to pay. As a result, tenants, especially vulnerable populations like seniors and low-income workers, have been forced to pay increasingly higher rents, sometimes well beyond their means. In some cases, renters have had to take on additional jobs just to keep up with rent hikes.
This move is being championed by San Diego’s City Council President, Sean Elo-Rivera, alongside housing advocates, who argue that algorithmic price-fixing is making housing unaffordable and pushing more residents out of the market. The proposed legislation has already gained traction, receiving support from local lawmakers. If passed, it would align San Diego with other cities like San Francisco, which have also implemented measures to curb the use of such technologies in housing markets.
The city’s legal team, the City Attorney’s Office, is now tasked with drafting the final version of the law, which will soon be reviewed by the City Council. This action is part of a broader state and national movement to prevent the use of AI to drive up housing costs. Recently, the U.S. Attorney General has also pursued legal actions against companies employing similar tactics in other parts of the country.
As the debate over the role of AI in housing intensifies, San Diego’s move to ban algorithmic price-fixing highlights the growing concern over the effects of these technologies on renters and the overall affordability of housing in one of California’s most expensive markets
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