Minneapolis joins San Francisco and Philadelphia as the third city to pass legislation banning the use of algorithmic rental price fixing software

Minneapolis, Minn – Yesterday, Minneapolis City Council, led by Council Members Robin Wonsley, Jeremiah Ellison, and Jason Chavez, passed legislation to ban algorithmic rental price fixing. Minneapolis is the third city in the country to do so, after San Francisco and Philadelphia passed similar bans last year in September and October, respectively. 

Companies like RealPage provide an algorithm for landlords to collude and exploit loopholes in price fixing law: landlords provide RealPage with data and RealPage’s algorithm, Yieldstar, recommends rent prices for landlords to maximize profits, drastically hiking up costs on seniors, students, families, and other renters. The corporate greed of RealPage and large landlords has created an anticompetitive housing market where renters can’t afford to stay in their homes and struggle to find a new place to live. In 2021, when discussing double digit rent increases in the country, RealPage executive Andrew Bowen said “I think [Yieldstar is] driving it, quite honestly.” 

“Banning algorithms that landlords use to jack up the rent is one clear way that we can prevent some of the most egregious extractive practices that landlords are using to exploit renters,” said the ordinance’s lead author, Council Member Robin Wonsley. “Minneapolis is majority renters. Banning rent algorithms moves us closer to a city where every single renter has an affordable place to call home.”

Recently, the Department of Justice filed an antitrust lawsuit along with 30 other attorneys general against RealPage and six major landlords for creating an anticompetitive market. Litigation can take years, however, and renters experiencing soaring costs need relief now. That’s why the Council took the step to ban this renter exploitation tool now.

“The use of algorithmic rent-setting tools undermines the fairness and competitiveness of our housing market, artificially inflating rents and pushing residents out of their homes,” said Council Member Jeremiah Ellison. “This ordinance is about restoring transparency and ensuring that rental prices are set through fair competition, not secretive algorithms designed to maximize profits at the expense of tenants. By taking this step, we are standing up for affordability, accountability, and a housing market that works for everyone in Minneapolis—not just corporate landlords.”

“Increased rents due to the use of algorithms negatively impact not only renters in properties that deploy them, they also distort the market for renters across Minneapolis and the region,” said Council Member Jason Chavez. “At a time when there aren’t enough truly affordable housing options in Minneapolis, the City needs to look at every possible option we have to prevent predatory corporate actors from making housing unattainable for renters. This Council is not waiting for a drawn out legal process to determine whether these corporations violated antitrust laws. We took this step now because our residents can’t afford inaction.”

Algorithms that use non-public data to influence rent or occupancy rates caused renters to pay an extra $3.8 billion in rent in 2024, and Twin Cities renters in units managed with algorithms paid an average of $324 more per year than renters in units that were not managed by algorithms. Minneapolis is 52% renters, and people of color are disproportionately renters in Minneapolis, meaning exploitative practices by landlords disproportionately extract wealth from people of color. 

For additional background on the issue, refer to this memo by Local Progress, Local Progress Impact Lab, and the American Economic Liberties Project on rental price fixing and how localities can take action.