In a pivotal meeting on June 11, 2025, the Seattle Housing and Human Services Committee discussed a proposed ordinance aimed at prohibiting algorithmic rent fixing. This legislation, co-sponsored by Council Members Strauss and Ring, seeks to combat anti-competitive rent hikes and prevent tenant displacement in a city grappling with a housing affordability crisis.
The ordinance, which would add a new chapter to the Seattle municipal code, was introduced by Council Member Ring, who emphasized the growing concern over corporate landlords using sophisticated software to set rental prices. This practice not only inflates rents but also contributes to increased vacancies and displacement, making it harder for residents to find affordable housing. Ring highlighted that cities like San Francisco and Philadelphia have already enacted similar measures, indicating a broader movement against algorithmic pricing in the rental market.
Tommaso Johnson from the council's central staff provided an overview of the legislation, explaining that it aims to define and prohibit the use of algorithmic tools that combine public and private data to suggest rental prices and lease terms. The bill would empower the city attorney's office to enforce civil penalties of up to $7,500 per violation and allow individuals harmed by such practices to seek damages.
Senator Solomon, the original sponsor of a similar state-level bill, joined the discussion, underscoring the urgency of addressing the issue. He noted that the algorithmic practices lead to artificially low vacancy rates and higher rents, which exacerbate the housing crisis. Solomon urged the committee to act swiftly, as the political landscape could shift, making future legislation more challenging.
The committee also addressed concerns regarding the potential impact on legitimate business practices, particularly from companies like Zillow. The bill is designed to differentiate between sharing public data and using proprietary algorithms for price setting, aiming to protect both renters and the integrity of the rental market.
As the meeting progressed, committee members expressed their support for the ordinance, recognizing its potential to provide essential protections for renters in Seattle. The discussions highlighted the critical intersection of technology and housing policy, as the city seeks to navigate the complexities of modern rental practices while safeguarding its residents.
In conclusion, the committee's deliberations on this ordinance reflect a significant step towards addressing the challenges posed by algorithmic rent fixing. With a vote anticipated in the coming weeks, the outcome could set a precedent for how cities manage rental pricing in an increasingly data-driven economy.