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 calls for a comprehensive investigation into whether property management software is contributing to anti-competitive behaviors in the rental market. This includes assessing the role of algorithms in determining rental prices and whether these practices are harming consumers by raising rental costs. If significant evidence is found, it could prompt legislative changes aimed at regulating algorithmic practices in real estate, thereby enhancing competitiveness and affordability in the housing market.
House Resolution 171 urges the Attorney General of Hawaii to investigate the potential misuse of algorithmic price-setting and price-fixing practices within the state's rental housing market. Given that Hawaii faces a significant affordable housing crisis, with the highest median rent in the country, legislative attention has turned to how technology may be exacerbating these issues. The resolution draws attention to findings that suggest a substantial portion of renters are cost-burdened, spending over 30% of their income on housing, and concerns that landlords may collude to inflate prices using property management software.
A notable point of contention surrounding this issue is the balance between technology's benefits and its potential to create monopolistic practices. On one hand, the advancement of technology has made property management more efficient; on the other hand, reliance on algorithms could dismantle market competitiveness, leading to inflated rents and exacerbating the housing crisis in Hawaii. The resolution seeks to find data-driven insights to inform future regulatory actions that could ensure a fairer housing market for residents.