35 Local PA Officials Call on Harrisburg To Ban Algorithmic Rental Price Fixing
A broad coalition from across the state calls on state legislatures to take up HB140
Harrisburg, PA — Earlier today, a group of 35 local officials from across the state sent a letter to the Pennsylvania Housing & Community Development House Committee asking them to bring HB140 to a vote. This bill would ban the practice known as “Algorithmic Rental Price Fixing,” making the state the second in the nation to do so. While the technology is relatively new, it has been used by small and corporate landlords across the country to inflate rents and squeeze working-class tenants during the nation’s out-of-control cost-of-living crisis. While Philadelphia became the first city in the commonwealth to ban the practice earlier this year, the letter’s coalition seeks to expand the ban statewide as rents across the state grew on average by 6.3% compared to 2024.
“Philadelphia City Council banned rental price-fixing to protect tenants and mom-and-pop landlords who play by the rules. Here in Philadelphia, half of renters spend more than they can afford on rent,” said Councilmember Jamie Gauthier, Chair of Philadelphia City Council’s Committee on Housing, Neighborhood Development, and the Homeless. “We need the Pennsylvania House of Representatives’ Housing & Community Development Committee to bring HB 140 up for a vote and stop price-fixing algorithms from seizing control of Pennsylvania’s housing market.”
“I’m incredibly proud that Philadelphia was the second municipality to ban rental price-fixing, because Big Tech firms have shown their legal strategy time and time again: Outpace and avoid regulation at all costs,” said Minority Whip Nicolas O’Rourke, primary sponsor of the Philadelphia Rental Price-Fixing Ban. “Especially in this corporatist moment at the federal level, localities and states need to be willing to move with urgency — so we need HB 140 to be brought up for a vote!”
The technology works by having landlords provide third-party service providers like RealPage with data, and those providers’ algorithms recommend rent prices to help landlords maximize profits. RealPage’s clients comprise nearly 90% of the U.S. market for multifamily rental housing units (with 50 units or more), and with such a large share of the market, RealPage clients have a magnified impact on rental prices across the country. In other words, algorithmic rental price-fixing by RealPage and corporate landlords is hiking costs for renters and driving people out of their homes. In some metro areas, the use of rent-fixing software algorithms has played a significant role in double-digit rent increases.
While the U.S. Department of Justice has filed an antitrust lawsuit against RealPage and six major landlords, that lawsuit was quietly settled by the Trump administration over the Thanksgiving holiday. As the details of the suit read, the Trump administration is poised to give RealPage even more power than it already has, handing over a victory to big landlords and the corporate tech they use to enrich themselves. However, much like in Pennsylvania, state and local officials from across the country have taken action to protect tenants. More than 13 localities and the entire state of New York have banned Algorithmic Rental Price Fixing, with many more states and localities considering similar legislation.
When rents spike because of hidden software, families are displaced, children’s schooling is disrupted, and local governments lose the stability needed to plan for growth. HB140 gives us the tools to fight back against practices that put profits over people,” said Rankin Borough Mayor Joelisa McDonald. “In communities like Rankin, stable and affordable housing is the foundation of economic development; without it, we cannot attract new businesses, support our workforce, or build the thriving tax base our residents deserve. Our communities need transparency, accountability, and a fair shot at safe, affordable housing.”
“As a local official, I see the harm of rent-inflating algorithms every day. HB140 gives Pennsylvania the power to stop exploitative price-fixing and protect our communities from being pushed out,” said Swissvale Borough Councilmember Fred Quinn. “No algorithm should decide whether a family in Swissvale can afford to stay in their home. HB140 is about restoring fairness, protecting our neighbors, and keeping Pennsylvania communities whole.”
“Lehigh County has one of the highest eviction rates in the state, on top of a soaring rent-to-income ratio. Algorithmic rental price fixing will have a devastating effect on tenants and housing affordability in the Lehigh Valley,” said Lehigh County Commissioner Jon Irons. “Pennsylvania needs to be a leader on protecting rental markets by passing HB140. This bill will protect working-class tenants and help municipalities across the Commonwealth fight the affordability crisis.”
“When hidden algorithms dictate a rent hike, school classrooms feel the immediate impact of displacement,” said PASD School Board Director Daniel Wiser. “Families are priced out of their homes, and students are torn from their school community. Learning stalls for the children of these families and for every other child in their new classrooms, with teachers needing to dedicate extra time to these new students. You cannot build a stable classroom on the foundation of unstable housing.”