S
pokane, Wash. – The city council is debating a proposal to ban algorithmic rent‑setting tools. While such software promises greater efficiency for the real‑estate sector, many question its reliability.

    Marcus Mathews, a Spokane broker with five years of experience, explained how the popular Zestimate works. “The Zestimate relies solely on a formula; it doesn’t account for recent upgrades like a new kitchen or roof,” he said. “It bases its estimate on comparable sales in the area.” Mathews warned that the tool can deviate by as much as 15 percent from the true market value, underscoring the need for human judgment. “No matter whether you’re buying, selling, or renting, you should conduct your own market research,” he added.

    Councilman Zack Zappone has voiced support for removing algorithmic rent‑setting tools, citing the goal of shielding tenants from rising rents. “The challenge is that landlords often use private AI services, making it hard to detect,” he noted.

    The motion, introduced during a recent council session, seeks to limit landlords’ use of automated pricing systems that set rents based on market data alone. Proponents argue that such tools can inflate prices without accounting for local factors like recent renovations or neighborhood trends.

    Mathews noted that the Zestimate does not factor in upgrades such as a new kitchen or roof, which can alter a property's value. He stressed that a broker’s knowledge provides context that algorithms lack, ensuring fair pricing and decisions for buyers, sellers, and renters alike.

    Mathews concluded that decisions benefit from a human touch.

    “I bring insight and expertise that algorithms can’t replace,” he said.