Lauren Rivera 
As rent prices continue to increase nationwide, more attention has been paid to the role played by algorithms that many companies use to set rental prices. New Jersey has joined eight other states taking legal action against these algorithms, and locally, some communities are banning the use of these tools. On May 21st, 2025, Jersey City became the first municipality in the Garden State to ban the use of AI-driven software to set rental prices in the city. Now, Hoboken is following suit with a similar ordinance that was passed at its July 9th City Council meeting. Read on for the details of this ordinance and what it means for Hoboken renters.
The Ordinance
An ordinance prohibiting the use of algorithmic rent-setting software in the Hoboken rental housing market was introduced at the June 4th City Council meeting and passed on July 9th.
Read More: Jersey City Council Bans the Use of AI-Driven Software When Setting Rent Prices
A press release from the City of Hoboken states that this ordinance makes it illegal for landlords to use AI-driven algorithmic software or data-sharing platforms to “coordinate, recommend, or implement rental prices, lease terms, or occupancy levels among competing landlords.”
The ordinance applies to all residential rental properties in Hoboken, excluding medical, long-term care, or detention facilities. If landlords do not comply, they can be fined up to $20,000, face imprisonment for up to 90 days, and engage in community service for up to 90 days.
Every Hoboken resident deserves access to a fair and competitive housing market, free from manipulation by secret algorithms or corporate collusion,” Hoboken Mayor Bhalla said. “This new law sends a clear message: we will not tolerate artificial rent inflation that puts profit over people. By protecting transparency and restoring market integrity, we are standing up for renters and preserving the character of our community. I thank the City Council for working with me to adopt this common-sense measure.”
The Hoboken ordinance was introduced a week after a similar ordinance was passed unanimously, 9-0, at the Jersey City Council Meeting on May 21st, making it the first city in the state to do such a thing. Read about this here.
32BJ SEIU, the division of the Service Employees International Union that represents building service workers throughout the Northeast and parts of the southeastern coast, was a supporter of the Jersey City ordinance.
“Hoboken residents are facing an affordability crisis and need to be protected from landlord collusion and dubious rent-setting algorithms,” Ana Maria Hill, New Jersey State Director for 32BJ SEIU, said in a statement shared with HG.
“This ordinance will do just that and follow the lead of the Jersey City Council, which weeks ago approved a similar measure 9-0. Too many of the essential workers who maintain and clean Hoboken buildings already cannot afford to live in the city they work. Our members – building cleaners, security officers, residential maintenance workers, school custodians – and all residents need a sensible housing policy to address this affordability crisis. We commend Mayor Ravi Bhalla, Councilman Joe Quintero, and Councilman Phil Cohen on their leadership on this issue and urge Hoboken city councilors to vote ‘yes’ on this important piece of legislation to rein in Hoboken’s affordability crisis.”
Updates as of 6/4
While the ordinance seeks to ban rent-setting algorithms, there is a caveat. At the June 4th City Council Meeting, 5th Council Ward Person + Council Vice President, Phil Cohen, introduced an amendment to allow the use of algorithms for publicly available pricing information that is older than 365 days.
The amendment, which the council unanimously voted yes on, would make the ordinance “less vulnerable to legal challenge,” Phil Cohen said at the meeting.
“This limit protects the City from an argument that the ordinance violates the First Amendment and an argument that the ordinance would prohibit the aggregation of public, freely available information from other lessors,” Phil Cohen told The Hoboken Girl. “The 365-day cap reflects that the most commercially meaningful information, when it comes to illegally fixing rents, is found in competing lessors’ non-public information collected during the last year.”
The Lawsuit
The New Jersey Attorney General filed a major lawsuit on Wednesday, April 23rd, 2025, against 10 New Jersey landlords and the property management software company RealPage. The lawsuit alleges that RealPage “agreed to set rents for multifamily housing properties statewide based on its algorithmic pricing software, and…[exchanged] sensitive, non-public information to align their prices and avoid competition that would otherwise keep rent prices down,” according to an earlier press release from the Attorney General’s Office.
“Hoboken has been directly affected by this alleged scheme as several properties are managed by defendant companies and tenants at these properties have reported substantial rent hikes dating back to 2023, including increases of 20 to 30 percent,” the press release states.
“Along with the Texas-based RealPage, the complaint names Morgan Properties Management Company LLC; AvalonBay Communities, Inc.; Kamson Corp.; LeFrak Estates, L.P. (“LeFrak”) and its subsidiary, Realty Operations Group LLC; Greystar Management Services, LLC (“Greystar”); Aion Management LLC; Cammeby’s Management Co. of New Jersey L.P.; Veris Residential, Inc.(“Veris”); Russo Property Management, LLC; and Bozzuto Management Company (“Bozzuto”) (collectively, “defendant landlords”), who collectively own and manage at least tens of thousands of rental units statewide.” Additional landlords are referenced but not named, and further defendants could be added as the suit proceeds.
New Jersey is now the ninth state to take legal action against RealPage. In August 2024, the US Department of Justice joined the Attorneys General of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington in suing RealPage.
See More: ‘The Saint Clair’ to Open in Former Scala del Nonna Space in Montclair
Follow @thehobokengirl on Instagram + TikTok to stay in the know with all of the local news and happenings, sign up for our weekly newsletter here, and check out our events calendar.
