realestate

Portland Council Revives Plan to Prohibit Rent‑Setting Algorithms

Portland City Council: key issue is whether the rent algorithm ban will deter developers from building new homes.

P
ortland City Council will vote next week on a proposed ban on using algorithms to set residential rents. After a heated debate, Council President Elana Pirtle‑Guiney moved the ordinance, championed by Councilor Angelita Morillo, to a second reading. The measure had stalled earlier this spring when Morillo withdrew it, citing litigation involving RealPage’s software in Berkeley, California. RealPage, a real‑estate data firm, is widely used by landlords; critics argue it enables rent collusion, while lobbyists claim it helps set competitive rates.

    The council has yet to pass a major policy, as members have been preoccupied with procedural disputes. Morillo stressed the need for substantive legislation, saying “We need to get a substantive policy passed out of this council sometime soon.” The central question is whether banning rent‑setting algorithms will discourage developers from building new housing in Portland.

    Councilor Dan Ryan expressed doubt that the ban would curb high rents, warning it could damage the city’s real‑estate reputation. A recent Urban Land Institute and PwC report ranked Portland 80th of 81 U.S. markets for investment potential, though it remains 30th for home‑building prospects. Ryan called the proposal “a solution in search of a problem.” Morillo countered that the ban need not conflict with housing development, noting the council’s July waiver of development fees to spur construction. She framed the measure as a challenge to corporate power, adding, “We have done our part.”

    The debate reflects broader tensions between market data use and affordable‑housing policy in Portland.

Portland Council revives plan to ban rent‑setting algorithms.