Urging The Attorney General To Investigate The Extent To Which Algorithmic Price-setting And Price-fixing Practices Are Being Used In The State's Rental Housing Market.
The resolution highlights concerns that some landlords may be utilizing advanced property management software which collects real-time pricing data and employs algorithms to set or recommend rental prices. These practices could potentially lead to collusion among landlords, impairing competition and consequently driving up rental prices. The resolution emphasizes the urgency for the Attorney General to assess the impact of these practices on housing affordability and to ensure the competitiveness of Hawaii's rental housing market.
HCR175 is a House Concurrent Resolution from the Thirty-third Legislature of Hawaii, urging the Attorney General to conduct an investigation into the rising trend of algorithmic price-setting and price-fixing practices within the state's rental housing market. Hawaii currently faces a severe affordable housing crisis, exemplified by its status as the state with the highest median rent in the nation. Consequently, more than half of Hawaii's renters are burdened by housing costs, spending over thirty percent of their income on rent.
In the broader context, HCR175 not only aims to address immediate concerns related to rising rental prices but also seeks to comprehensively analyze and potentially reform the policies surrounding rental practices in Hawaii. By mandating a thorough investigation, the resolution advocates for a proactive approach to understanding and mitigating the factors exacerbating the affordable housing crisis, ultimately striving for a more equitable housing market.
A significant point of contention highlighted within HCR175 is the assertion that algorithmic pricing can lead to noticeable rent increases, with reports suggesting increases of as much as 14.5 percent due to such practices. Supporters argue that an investigation is necessary to safeguard consumers and prevent anti-competitive tactics in the rental market, while detailed analysis and subsequent recommendations will be crucial for informing future legislative or regulatory actions in Hawaii to tackle these issues.