Senators Demand Answers: Did RealPage Push for Federal AI Ban?
Five Democratic senators are investigating whether a rent-pricing software company helped craft legislation that would protect it from state regulation for the next decade.
The Investigation
On May 27, Senators Elizabeth Warren, Bernie Sanders, Amy Klobuchar, Cory Booker, and Tina Smith sent a detailed letter to RealPage CEO Dana Jones demanding answers about the company's lobbying efforts. They've given the company until June 10th to respond with specific information about its Congressional lobbying since 2020.
The senators are concerned that RealPage may have pushed for a provision in the Republican budget bill that would ban states from regulating AI for 10 years - directly benefiting the company's bottom line.
What's in the Budget Bill
The House Republican reconciliation package includes a sweeping provision that would ban states from "enforcing any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems" for ten years.
This isn't just about rent pricing. The ban would affect state laws covering:
- AI chatbots and deepfakes
- Automated hiring systems
- Facial recognition technology
- Court sentencing algorithms
- Any automated decision-making systems
Even House Republicans admitted this provision is a "policy change" that shouldn't qualify for budget reconciliation rules.
The RealPage Problem
RealPage sells software that uses AI to help landlords set apartment rents. The Justice Department alleges this creates an illegal price-fixing scheme that harms millions of renters.
The senators' concerns are based on hard evidence:
- A RealPage executive claimed their tool was responsible for raising rents more than 14%
- The company helps landlords exchange proprietary information about lease terms and rents
- This data feeds into algorithms (first YieldStar, now AIRM) that recommend rents for millions of units
- The Justice Department filed an antitrust lawsuit against RealPage in August 2024
Cities and States Fighting Back
Multiple jurisdictions have already banned or restricted algorithmic rent-setting:
Cities with bans in place:
- Minneapolis, Minnesota
- Philadelphia, Pennsylvania
- Berkeley, San Francisco, and San Diego, California
States with pending legislation:
- Colorado (passed both chambers, awaiting governor's signature)
- Connecticut, Hawaii, Illinois, Kentucky, Maine
- Maryland, Massachusetts, Minnesota, Nevada
- New Jersey, New York, Virginia, Washington
The federal AI ban would "nullify existing and future state efforts" to protect renters from these algorithms.
The Lobbying Trail
The senators found concerning patterns in RealPage's influence efforts:
Spending increases: The National Multifamily Housing Council (which represents RealPage) increased lobbying spending from $4.8 million in 2020 to nearly $9 million in 2024.
Targeted lobbying: The trade group specifically disclosed lobbying on "issues surrounding the risks and opportunities posed by artificial intelligence" and "federal policies affecting usage of data, artificial intelligence, software" in real estate.
Timing: RealPage "stepped up its lobbying" in response to local legislation that would affect its business.
What Senators Want to Know
The letter asks RealPage to provide detailed information by June 10th:
- Which firms and individuals has RealPage hired for Congressional lobbying since 2020?
- How much money has the company spent on Congressional lobbying each year since 2020?
- How much was spent specifically on AI legislation lobbying?
- Did RealPage provide any legislative language or input related to the AI ban provision?
- How would RealPage be financially impacted in each of the 14 states with pending anti-algorithm legislation?
The Bigger Picture
This investigation highlights a broader concern about corporate influence in lawmaking. As Senator Warren noted: "RealPage ramped up its million dollar spending campaign in Congress and lo and behold, Republicans in Congress passed a provision to block states from protecting renters."
The senators argue that more Americans than ever are paying over 30% and 50% of their income on housing, yet Congress is considering legislation that would prevent states from addressing algorithmic price-fixing in the rental market.
What This Means for Renters
If the federal AI ban passes, it could:
- Block all existing city and state laws restricting rent-setting algorithms
- Prevent new legislation to protect renters for 10 years
- Allow companies like RealPage to continue operating without state oversight
- Potentially lead to higher rents through coordinated pricing
The senators warn that "Americans will lose important protections against the misuse of AI tools" while companies benefit "at the expense of renters who will be forced to pay higher costs."
Our Position
As an apartment association representing multifamily housing professionals, we believe this investigation highlights the challenges our industry faces in navigating complex regulatory environments. Our members need clarity and consistency in the rules governing property management technology.
We support transparency in policymaking that affects our industry. Whether you use RealPage's tools or other pricing software, you should understand how regulatory changes might impact your business operations.
The multifamily housing industry works best when there's fair competition, clear regulations, and technology that helps property managers serve residents efficiently. Our members deserve to know how federal and state policy changes will affect the tools and practices they rely on to manage properties effectively.