The Los Angeles City Council has directed the Los Angeles Housing Department to assess the number of ownership and management entities using algorithm-based software to establish rental prices. Additionally, the study will evaluate the feasibility of instituting a ban on this practice within the city. The Housing and Homelessness Committee reviewed and approved the motion, forwarding it to the full council for consideration. The investigation will provide insights into the impact of algorithmic rent pricing on affordability and tenant protections.
Algorithm-based rent pricing has raised concerns about rent inflation and affordability in Los Angeles. This investigation could lead to regulatory measures that protect tenants from potential price manipulation by property owners and management firms.