The General Law Committee of Connecticut convened on February 14, 2025, for a public hearing focused on housing issues, particularly the impact of rent-setting software algorithms on rental markets. The meeting highlighted concerns regarding how these algorithms facilitate price coordination among landlords, potentially suppressing competition and artificially inflating rental prices.

One of the key testimonies came from an advocate who discussed a joint brief released by their organization and Local Progress. This brief outlined how third-party platforms, notably RealPage, utilize proprietary data from landlords and publicly available datasets to recommend rent levels that maximize revenue across the market. The testimony emphasized that these algorithms lead to practices such as holding units off the market to create artificial scarcity and displacing renters to increase prices.

The advocate referenced a report from the Biden administration's White House Council of Economic Advisors, which indicated that the use of these rent-setting algorithms costs renters an average of $70 per month, amounting to a staggering $3.8 billion in additional costs in 2023 alone. They argued that without addressing the issue of algorithm-driven price coordination, efforts to increase housing supply would be ineffective.

The discussion also touched on recent legislative efforts, with bills introduced in 17 states, including New Jersey and New York, aiming to impose bans on the use of such algorithms for rent setting. The advocate noted that while this bill alone would not solve the housing affordability crisis, it is a critical component of a broader solution.

Representative Luxembourg raised a question regarding the existence of a fair market rent system provided by HUD, suggesting that it could strengthen the argument for the bill. The advocate agreed, explaining that the issue lies not in the use of algorithms per se, but in the collusion that arises when multiple landlords use the same platform to set prices.

The meeting concluded with a recognition of the complexities surrounding rental markets and the need for continued dialogue on how to ensure fair competition and affordability for renters. The committee is expected to consider the implications of the testimonies and the proposed legislation in future sessions.