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Yes—New York enacted a statewide law targeting certain algorithm-enabled coordination among residential landlords. But the shorthand “New York banned AI-enabled rent pricing” is too broad. The law does not prohibit every use of artificial intelligence, automated pricing, spreadsheets, market data, or rent-adjustment software. It targets systems that collect qualifying information from multiple independent landlords, analyze it, and recommend rents or other lease conditions in a way that facilitates an agreement not to compete.
New York General Business Law §340-b took effect on December 15, 2025.
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What New York’s law bans
The law prohibits two related kinds of conduct:
- Facilitation by software and data companies: A person or company may not knowingly or with reckless disregard facilitate an agreement among two or more residential rental-property owners or managers not to compete, including through software, data analytics, or an algorithmic device.
- Use by landlords and managers: A landlord or property manager may not knowingly or with reckless disregard set or adjust rents, renewal terms, occupancy levels, or other lease terms based on recommendations from a qualifying coordinating system.
The central issue is not whether a computer helped calculate a number. It is whether a system helps competing housing providers coordinate sensitive information and reduce competition.
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When did the law take effect?
Governor Kathy Hochul signed bill S7882, with Assembly companion A1417-B, on October 16, 2025. The bill stated that it would take effect 60 days after becoming law, making December 15, 2025, the operative date. The statewide law added §340-b to New York’s General Business Law.
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See the governor’s signing announcement and the New York Senate bill record.
How the statutory test works
A system falls within the law’s definition of a qualifying coordinating function when it performs all three of these functions:
- It collects historical or current rental information—such as prices, supply levels, lease start or termination dates, or renewal information—from at least two non-affiliated rental-property owners or managers.
- It computationally analyzes or processes that information, including by using it to train an algorithm.
- It recommends rents, renewal terms, ideal occupancy levels, or other lease conditions.
The definition of an “algorithmic device” is technology-neutral. It covers a machine, device, computer program, or software that performs the coordinating function alone or with human assistance. A vendor does not avoid the law simply by calling its product “revenue management” instead of “AI.” Conversely, the statute does not make every product marketed as AI unlawful.
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What is likely covered?
A typical high-risk example would be a platform that:
- receives current or historical rental data from multiple independent landlords;
- compares those landlords’ prices, supply, lease expirations, or renewals;
- uses computational analysis or an algorithm to process the information; and
- recommends rents, renewal terms, occupancy targets, or related lease conditions.
The risk is greater when landlords knowingly or recklessly rely on those recommendations, or when the service is designed to help them avoid competing aggressively on price, availability, or lease terms.
The law reaches more than new-lease asking rents. Its language also covers renewal terms, ideal occupancy levels, and other lease conditions. A recommendation to keep units vacant or limit availability could therefore raise different questions from a simple rent calculator.
What the law does not automatically prohibit
The statute is not a blanket ban on automated rent software. Depending on the facts, the following may fall outside its definition:
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →- Internal systems: Software using only one landlord’s own historical information may present a different legal question from a cross-owner coordination platform.
- Basic calculators and spreadsheets: A tool that performs arithmetic without collecting and analyzing qualifying information from multiple independent owners and recommending lease terms does not fit the full statutory definition described above.
- Independent market research: A landlord’s use of market information is not categorically banned. The statute does not resolve every question involving public listings, web scraping, or public datasets.
- Commonly owned or managed properties: The ownership and management relationships among properties matter because the law focuses on information from qualifying separate owners or managers.
- Government programs: The statute excludes specified government rent-regulation and affordable-housing rent or income-limit systems from the prohibited coordinating function.
These are not universal safe harbors. Whether a particular product or practice is covered depends on its data sources, recommendations, ownership structure, user conduct, and the parties’ knowledge or recklessness. Human review does not automatically remove a system from the law because the statutory definition includes devices operating with human assistance.
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Why the law is described as an AI rent-fixing ban
The governor’s office presented the measure as a response to alleged algorithm-enabled collusion and rent inflation, including concerns associated with RealPage-style systems. The policy theory is straightforward: competing landlords provide sensitive rental information to a common intermediary; the intermediary analyzes that information and recommends pricing or occupancy strategies; and landlords may become less willing to compete for tenants.
The governor’s announcement cited an estimate of billions of dollars in excess rent associated with algorithm-enabled practices. That figure is an executive-branch assertion, not a factual finding established by §340-b itself. The same distinction applies to claims that any particular company or landlord fixed rents: the law creates a conduct-based prohibition, but it does not establish that every automated recommendation is price fixing.
Is this an outright ban on RealPage?
No. The statute does not name RealPage. It is written in technology-neutral terms and applies according to what a system does, what information it uses, and how landlords or managers rely on it.
RealPage announced on November 26, 2025, that it had sued New York Attorney General Letitia James. The company characterized the law as unconstitutional and argued that it restricts lawful recommendations based on mathematical analysis and rental-market information. Those are RealPage’s litigation positions, not a court ruling that the law is invalid or that the company violated it.
Its announcement is available from RealPage. The existence of that lawsuit should not be confused with an injunction, final judgment, or definitive judicial interpretation.
What this means for tenants
The law may give tenants and policymakers a basis to question whether rent, renewal, or availability decisions relied on a system coordinating information across independent landlords. But it does not:
- create a general rent cap;
- automatically lower existing rents;
- make every software-generated rent increase illegal;
- automatically invalidate a lease;
- guarantee a refund or damages; or
- give every tenant access to a vendor’s algorithm, source code, or confidential pricing records.
A tenant who suspects that a landlord used a prohibited system should preserve advertisements, renewal notices, rent ledgers, emails, screenshots, and statements describing how rent decisions were made. Those records may help a tenant speak with a housing attorney, tenant organization, or enforcement authority, but documentation alone does not establish a claim or guarantee an individual remedy.
Any remedy could depend on the applicable enforcement process, other New York laws, rent-regulation rules, contract principles, or a separate antitrust claim. The statute’s operative section does not provide a simple automatic payment or standalone fine schedule for every violation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What landlords and property managers should review
Owners and managers should examine their technology vendors and decision-making records rather than assume that a product is safe or prohibited based only on its marketing label. Important questions include:
- Does the vendor collect data from two or more independent owners or managers?
- What information is shared—prices, supply, occupancy, lease expirations, renewals, or other competitive terms?
- Does the platform computationally process that information or train an algorithm on it?
- Does it recommend rents, renewal conditions, occupancy targets, or other lease terms?
- Do employees rely on those recommendations, even if they retain final approval?
- Are the properties commonly owned or managed?
- Does a government rent-regulation or affordable-housing exception apply?
- Can the company document its data sources, recommendation logic, user controls, and New York-specific functionality?
Vendor contracts, data-flow diagrams, pricing policies, approval records, and communications about recommendations may become important if regulators or courts examine how a system operates.
The main legal and policy trade-off
Supporters say the law prevents competing landlords from sharing sensitive information through a common pricing intermediary and using software to reduce competition or hold units off the market. Critics, including RealPage, say it may restrict lawful analytical advice and the use of mathematical methods and market information.
Those arguments reflect a broader tension: the same technology can help a landlord organize information about its own properties, or it can serve as a mechanism for coordination among competitors. New York’s law attempts to distinguish those uses by focusing on the source of the data, the system’s recommendations, the relationships among property owners, and the parties’ state of mind.
The law also cannot by itself resolve housing scarcity, construction costs, zoning restrictions, vacancy rates, or broader supply and demand. Its objective is to address a particular form of coordination—not to function as a statewide rent cap or a complete affordability policy.
Bottom line
New York’s statewide law is real and has been in effect since December 15, 2025. The most accurate description is that it bans certain algorithmic rent coordination among independent residential landlords and restricts landlords’ knowing or reckless reliance on recommendations from qualifying systems.
It does not ban all AI in housing, all automated rent adjustments, or every use of market data. The decisive questions are whose data a system collects, how it processes that data, what it recommends, whether competing landlords are involved, and whether the conduct was knowing or reckless.
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