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.a–h 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 to restrain trade 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 up to seven percent, with a company executive publicly stating that the software could be responsible for rent increases of up to 14.5 percent. f. Property management software companies and landlords who use algorithmic systems that serve 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, algorithm, or other automated 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 have been subject to public and private litigation for alleged violation of existing State and federal antitrust law. g. Although the form of restraint of trade has evolved, the vital role of antitrust law in maintaining the competitive function of the free market remains. h. New Jersey recognizes housing as a basic human need and endeavors to expand access to affordable housing.
Section 1 sets forth the Legislature's findings on New Jersey's affordable housing crisis, documenting steep rent increases (35% for three-bedroom apartments, 61% for Hoboken studios from 2021–2024), noting that over 50% of New Jersey renters are rent-burdened, and identifying algorithmic property management software as a contributor to anticompetitive coordination among landlords. The section references ongoing public and private litigation against property management software companies and reaffirms New Jersey's commitment to affordable housing.
As used in P.L. , c. (C. ) (pending before the Legislature as this bill): "Affordability controlsAffordability controls"Affordability controls" means a restriction on rent price established pursuant to a government program, including but not limited to: the federal section 8 Housing Choice programs, authorized pursuant to Title 42 of the Code of Federal Regulations; P.L.2004, c.140 (C.52:27D-287.1 et seq.); the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.); any program administered by the New Jersey Housing and Mortgage Finance Agency; a rent control or rent levelling ordinance; or other local, State or federal government housing program.Section 2" means a restriction on rent price established pursuant to a government program, including but not limited to: the federal section 8 Housing Choice programs, authorized pursuant to Title 42 of the Code of Federal Regulations; P.L.2004, c.140 (C.52:27D-287.1 et seq.); the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.); any program administered by the New Jersey Housing and Mortgage Finance Agency; a rent control or rent levelling ordinance; or other local, State or federal government housing program. "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, algorithm, or other automated 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, algorithm, or other automated 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. "Coordinator" shall not include a government entity that sets or limits rents or sale prices of residential property through affordability controls in accordance with law.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, algorithm, or other automated 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, algorithm, or other automated 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. "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. "Coordinator" shall not include a government entity that sets or limits rents or sale prices of residential property through affordability controls in accordance with law.Section 2" shall not include a government entity that sets or limits rents or sale prices of residential property through affordability controlsAffordability controls"Affordability controls" means a restriction on rent price established pursuant to a government program, including but not limited to: the federal section 8 Housing Choice programs, authorized pursuant to Title 42 of the Code of Federal Regulations; P.L.2004, c.140 (C.52:27D-287.1 et seq.); the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.); any program administered by the New Jersey Housing and Mortgage Finance Agency; a rent control or rent levelling ordinance; or other local, State or federal government housing program.Section 2 in accordance with law. "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 establishes the bill's key definitions. The central concept is the coordinating function — a three-part definition requiring (1) collection of nonpublic pricing, supply, or lease-term data from two or more rental property owners, (2) algorithmic processing of that data, and (3) recommendation of rental prices, lease renewal terms, or occupancy levels back to owners. A coordinator is any person operating software or data analytics that performs this function. Government entities administering affordability controls are carved out of the coordinator definition.
3.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. "Coordinator" shall not include a government entity that sets or limits rents or sale prices of residential property through affordability controls in accordance with law.Section 2;
3.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. "Coordinator" shall not include a government entity that sets or limits rents or sale prices of residential property through affordability controls in accordance with law.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, algorithm, or other automated 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 bill's operative prohibition. It declares two categories of conduct unlawful under the New Jersey Antitrust Act. First, rental property owners (and their agents, representatives, or subcontractors) are prohibited from subscribing to, contracting with, or exchanging any consideration for the services of a coordinator. Second, coordinators are prohibited from facilitating agreements among rental property owners that restrict competition with respect to residential dwelling units, including by performing a coordinating function. The effect is a per se prohibition on the use of algorithmic rent-coordination software in the New Jersey residential rental market — both the demand side (landlords subscribing) and the supply side (software providers facilitating coordination) are reached.
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 — a roughly 90-day delayed implementation window to allow affected parties to wind down existing contracts with coordinators.