Washington, D.C. — Following news that the Colorado legislature has passed HB25-1004—a bill that would rein in the use of algorithmic rent-setting software in rental housing markets—advancing it to the Governor’s desk, the American Economic Liberties Project released the following statement.

“Banning algorithmic rent fixing in housing markets is a common-sense policy to bring down the cost of housing for everyday Coloradans,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “Rent should be priced by supply and demand, not secretive, collusive algorithms designed to extract wealth from renters while corporate landlords post record-high profits. Governor Polis, a supporter of Abundance-esque policies to increase the supply of housing, should understand that price-fixing stunts investment in new development and holds existing units off the market, and that this bill fits solidly alongside other efforts to make Colorado more affordable for all. We applaud Reps. Woodrow and Mabrey and Sens. Gonzalez and Hinrinchsen for recognizing that closing this loophole is a necessary solution to create a fair and competitive housing market, and urge Governor Polis to swiftly sign it into law.”

The use of third-party platforms to set rents across the country has allegedly led to double-digit rent increases in some markets – boosting landlord profits while driving up housing costs, and exacerbating the housing crisis and financial insecurity for average Americans. Colorado now stands on the precipice of joining San Francisco, Philadelphia, Minneapolis, San Diego, and Berkley, where municipal leaders have already enacted restrictions on the use of such software.

Learn more about the campaign to End Rental Price-Fixing here.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.