Minneapolis committee approves ordinance banning algorithmic rent‑setting tools

The Business, Housing and Zoning Committee on Thursday approved an ordinance amending Minneapolis Code of Ordinances Title 12, Chapter 244 to prohibit landlords from using algorithmic rent‑setting tools to determine market rents, voting to give the ordinance final approval for the City Council. Council Member Allison, the ordinance author, said the measure will take effect March 1, 2026.

The ordinance defines “algorithmic device” and “nonpublic competitor data,” requires rental‑license self‑attestation at renewal, establishes complaint‑based enforcement by Regulatory Services and includes penalties up to license revocation. An amendment added an explicit private right of action allowing tenants and advocates to sue landlords who violate the ordinance.

Council Member Allison, who presented the item, framed it as a preemptive step to protect renters from automated pricing that she said can “inflate prices, reduce competition, and drive more tenants out of their homes.” She cited ongoing U.S. Department of Justice and multistate attorney‑general litigation involving RealPage as an impetus for local action and pointed to other cities that have restricted similar software.

Two residents and a University of Minnesota student government representative testified in support during the public hearing. William Raymond, who described housing insecurity he has experienced, said the policy would protect smaller local landlords and tenants from pricing tactics used by large investment firms. Siya Shilar, director of local affairs for the UMN undergraduate student government, told the committee students are disproportionately affected by rent spikes near campus and urged passage.

Regulatory Services Director April Bogart said the department will rely primarily on tenant and advocate complaints to identify violations, will conduct landlord education before enforcement, and will use license renewal attestations as a compliance checkpoint. Bogart told the committee she did not expect the city to conduct large‑scale forensic audits of pricing software but would follow up on complaints, confirm landlords’ attestation and take licensing action if needed.

Council Member Cashman raised capacity questions about enforcement and whether tools such as Microsoft Excel would be captured; Bogart replied that the city does not intend to treat spreadsheets as algorithmic pricing software. Council Member Chavez urged passage, citing a study he referenced showing average annual rent increases in units managed with this software.

With the motion as amended, the committee voted to approve the ordinance.

Why it matters: Committee members who supported the measure said it aims to prevent coordinated or automated price increases that can accelerate displacement and create less transparent rental markets. Supporters also said a local ban is necessary given uncertain federal action and the slow pace of state-level legislation.