Jersey City Council Approves Landmark Ordinances to Ban Algorithmic Rent Gouging Among Tenants
In a decisive move to bolster tenant protections and labor standards, the Jersey City Council passed two pivotal ordinances Wednesday night.
Set into motion, one newly passed ordinance prohibits the use of rent-setting algorithms such as RealPage—software that is currently the subject of federal and state investigations for allegedly inflating housing prices.
A second measure requires fair wages and benefits for service workers in tax-abated buildings, addressing longstanding concerns among employees who have gone more than a decade without standardized pay increases.
“Tonight I just received yet again an illegal rent increase, my rent is now 60 percent higher than in 2021,” said Jessica Brann, a Portside Towers tenant who spoke at the Jersey City Municipal council meeting last night. “Tonight I am offering a path forward, first we need to start writing ordinances that do require enforcement not ones with vague language.”
What has become a saga of renter and tenant violations for nearly three years at the behest of landlords spiking rental increases has been the outcry of the tenants of Portside Towers in Jersey City.
Last night marked the 59 public meeting they attended since 2022, in denouncing the city’s lack of enforcement on a municipal order enshrined in the city’s municipal code related rental control.
Three years ago the Hudson Reporter first broke this story, on how Portside Tenants were subjected to 30 to 40 percent rental increases, in which New Jersey takes on some of the most extensive municipal rent control measures in the nation.
A document obtained by Slice of Culture indicated that the Rent Leveling Board unanimously determined both buildings have been subject to rent control since their inception.
Under current housing laws, annual rent increases are generally capped at 4 percent according to local ordinance.
In cities like Jersey City and Hoboken, rent control typically applies to buildings more than 30 years old. However, the regulations can also extend to newer developments if landlords failed to file for a state exemption at the time of construction.
Jersey City has emerged as one of the nation’s fastest-growing rental markets, with average asking rents soaring to $2,850 per month as of October—a 28 percent increase since 2012, according to The Wall Street Journal.
A new analysis by the progressive watchdog group Accountable.US reveals that nationwide rents have surged by an average of 31 percent since 2019—outpacing wage growth, which has increased by just 23 percent over the same period.
At the same time, major real estate corporations have reported rising profits, highlighting a growing disparity between housing costs and income.
“We might be approaching a record here, perhaps one of those really big records, stay tuned you won’t want to miss the next council meeting,” said Kevin Weller. “Jersey City has become in many ways the epicenter of the affordable housing crisis, particularly regarding algorithmic software [Real Page] use to set rent prices in violations of rent control laws.”
The sharp rise reflects broader trends in urban housing demand, driven by factors such as an influx of residents from neighboring New York City, ongoing development, and limited affordable housing stock, as indicated by real estate analysts.
The city’s rapid rent growth has fueled concerns about displacement and affordability, prompting local officials to explore regulatory measures aimed at curbing rent hikes and protecting tenants.
JC IN THE NEWS reached out Equity Residential for comment related to the unanimous approval last night to ban Real Page in Jersey City, none has been provided in the time of this report.
JC IN THE NEWS also reached out the mayor’s office for comment on the decision made on banning Real Page, in which the response was to direct to Ward E Councilman James Solomon, leading the efforts against banning the algorithmic software.
Mayor Steven Fulop did not provide a comment at the time of this reporting.
"Tonight, Jersey City took a stand against illegal collusion from corporate landlords driving displacement and inequality," said Councilmember James Solomon. "We passed first-in-the-state legislation to ban algorithmic rent collusion and guaranteed long-overdue wage increases for building service workers. If you're a landlord using tech to jack up rents, or a developer benefiting from tax breaks while underpaying workers, we are putting you on notice: Jersey City is on the side of fairness, dignity, and affordability."
Crafted in collaboration with 32BJ SEIU, a new set of measures aims to rein in corporate landlords and real estate firms that use algorithm-driven rent increases or benefit from public funding while neglecting to provide fair wages. “This is a common-sense piece of legislation,” he stated.
The legislation represents a significant victory for low-income tenants and building service workers across the city.
Historic Rent-Gouging Lawsuit Against Equity Residential Moves to Federal Court
A sweeping class action lawsuit filed by tenants against real estate giant Equity Residential has moved to federal court, with plaintiffs seeking more than $400 million in financial reparations — a sum that could exceed $700 million if punitive damages are awarded, according to reporting by Jersey Digs.
JC IN THE NEWS has uncovered documents filed by Equity Residential in 1998 indicating the company acknowledged that the property in question was subject to rent control.
The revelation adds context to a unanimous decision made in 2023, when the city's Rent Leveling Board voted 6-0 affirming that the two residential towers are covered under Jersey City's rent control ordinance, known as Chapter 260.
The ordinance was originally adopted by the City Council on February 7, 1986.
“I believe this is a good ordinance. My concern is the enforcement…They said they are going to bring it back,” added Jersey City Council President Joyce Watterman, who is also a mayoral candidate for the city.
The complaint accuses the property owner of systematically and unlawfully inflating rents on rent-regulated units from 1995 to the present, allegedly violating local housing laws and the New Jersey Consumer Fraud Act.
The state of New Jersey has taken legal action against property management software company RealPage, holding it and 10 of the state’s largest landlords accountable for allegedly conspiring to drive up residential rents.
Filed recently by Attorney General Matthew Platkin, the lawsuit accuses the defendants of violating federal and state antitrust laws, as well as New Jersey’s consumer fraud statutes, as reported by JC IN THE NEWS.
The complaint alleges that RealPage’s revenue management software and algorithms were deliberately used by landlords—including AvalonBay Communities (AVB.N)—to artificially inflate rents across multifamily housing properties, exploiting tenants and undermining fair housing practices. Equity Residential Management LLC. the owner of both Portside Tower buildings is not in the mix of the state suit.
Tenants argue that Equity Residential reaped an estimated $140 million in illegal rent increases, undermining protections meant to ensure stable and affordable housing.
The plaintiffs are pursuing treble damages under state consumer protection laws, which could dramatically raise the financial stakes for the landlord. If upheld, the case would mark a landmark moment in the ongoing battle over rent regulation and landlord accountability — potentially exposing decades of regulatory failures.
Adrian Orozco, Political Director of SEIU 32BJ, also commended the Hudson County Board of Commissioners for backing the initiative which mentioned, “This is a common-sense piece of legislation.”
The Jersey City Council passed with a unanimous approval of 9-0.