WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
1 The Legislature finds and declares that: a. New Jersey is in the midst of an affordable housing crisis, as demonstrated by rental housing industry data showing median rent for a three-bedroom apartment increasing by 35 percent in the State from 2021 through 2024 and a studio in a more urban environment such as Hoboken increasing by 61 percent in the same timeframe. b. Data from the United States Census Bureau indicates that over 50 percent of renters in New Jersey are deemed "rent burdened," which means an individual spends more than 30 percent of income on rent. c. Recent national data indicates that landlords of residential rental housing use property management software to collude and raise residential rental housing prices, which may have contributed to recent increases in the State. d. Landlords engaging with the software supply real-time prices and additional lease information to companies managing the software, who proceed to use algorithms to fix rental prices. As a result, competition decreases and typically rental prices increase. e. A leading property management software company in the United States hinted at the outcome of using its software by stating on its website that it enables landlords to "outperform the market" by two to five percent, with a company executive publicly stating that the software could be responsible for rent increases of up to 14.5 percent. f. New Jersey recognizes housing as a basic human need and endeavors to expand access to affordable housing.
Section 1 sets out the Legislature's findings regarding the affordable housing crisis in New Jersey, documenting sharp rent increases from 2021 through 2024, the prevalence of rent burden among New Jersey renters, and the role of property management software in facilitating coordinated rent-setting among landlords. The findings reference national data indicating landlords use algorithmic software to collude on prices and cite a leading property management software company's claims about its ability to help landlords "outperform the market." These findings provide the policy justification for the prohibitions in Section 3 but impose no independent compliance obligations.
As used in this act: "Coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling unitsResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2 from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner. "CoordinatorCoordinator"Coordinator" means any person who operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Section 2" means any personPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2 who operates a software or data analytics service that performs a coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2 for any rental property owner, including a rental property owner performing a coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2 for their own benefit. "PersonPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2" means, unless the context otherwise requires, any natural personPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2 or personsPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2, or any corporation, partnership, company, trust, or association of personsPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2. "Residential dwelling unitResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unitResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.
Section 2 defines the key terms used in the bill. The central defined terms are coordinating function and coordinator. A coordinating function requires all three elements: (1) collecting rental pricing, supply, or lease data from two or more rental property owners, (2) algorithmically analyzing or processing that data, and (3) recommending prices, lease terms, or occupancy levels back to an owner. A coordinator is any person operating software or data analytics that performs this function — notably including a rental property owner who performs the function for their own benefit. The definition of residential dwelling unit is broad, covering houses, apartments, and accessory units used as primary residences, but excludes medical, long-term care, and correctional facilities.
(a) 1 It shall be unlawful and a violation of the "New Jersey Antitrust Act," P.L.1970, c.73 (C.56:9-1 et seq.) for: a. a rental property owner, or any agent, representative, or subcontractor thereof, to subscribe to, contract with, or otherwise exchange any form of consideration in return for the use of services of a coordinatorCoordinator"Coordinator" means any person who operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Section 2;
(b) 2 b. a coordinatorCoordinator"Coordinator" means any person who operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Section 2 to facilitate an agreement among rental property owners that restricts competition with respect to residential dwelling unitsResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2, including by performing a coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2.
Section 3 is the operative heart of the bill, designating two categories of conduct as unlawful violations of the New Jersey Antitrust Act. Subsection (a) prohibits rental property owners — and their agents, representatives, or subcontractors — from subscribing to, contracting with, or exchanging consideration for a coordinator's services. Subsection (b) prohibits coordinators from facilitating anti-competitive agreements among rental property owners, including by performing a coordinating function. Both prohibitions are structured as per se antitrust violations rather than requiring proof of actual anti-competitive effect, reflecting the Legislature's view that algorithmic rent coordination is inherently harmful to competition.
This act shall take effect on the first day of the fourth month next following the date of enactment.
Section 4 provides that the act takes effect on the first day of the fourth month following enactment. This is a standard delayed-effective-date provision that imposes no independent compliance obligation.