A federal judge has blocked New York from enforcing a law that limits landlords and real estate professionals from using algorithmic software to set residential rents, giving RealPage a temporary legal win in its challenge to the legislation. U.S. District Judge Valerie Caproni issued the ruling, which suspends enforcement of the state measure while the company’s lawsuit moves forward. RealPage, a Texas-based technology firm specializing in property management tools, claimed the New York legislation violated its First Amendment rights by restricting its ability to offer pricing recommendations through its software.
The law, enacted by Governor Kathy Hochul in October 2025, marked one of the first state-level attempts to curb algorithmic rent-setting. Introduced by then-State Senator Brad Hoylman-Sigal, the measure sought to prevent landlords from using software that artificially inflated rents or reduced housing availability. The state had already delayed enforcement pending the court’s decision.
In her 27-page ruling, Caproni acknowledged the constitutional question was finely balanced but determined RealPage had a plausible chance of proving the law unconstitutional. She noted the legislation’s broad application, which restricted software use without distinguishing between publicly available data and proprietary information. Caproni said the law appeared to prohibit ordinary commercial conduct simply because it was carried out through software.
New York Attorney General Letitia James’ office defended the legislation, arguing it was designed to prevent anticompetitive practices by technology firms in rental markets. The state also maintained that the law regulated conduct rather than constitutionally protected speech. Neither James’ office nor Hoylman-Sigal provided immediate comment following the decision. RealPage also chose not to respond.
The legislation followed growing scrutiny of algorithmic pricing in the US rental housing market. The US Department of Justice had previously alleged that RealPage’s software used non-public, competitively sensitive information supplied by landlords to generate rental pricing recommendations. The department alleged this could enable collusion among rival landlords. RealPage later resolved the matter with the DOJ by agreeing to limit its use of non-public competitor data in its software and restricting how active lease information was incorporated into its models.
RealPage filed its New York lawsuit just two days after finalizing the settlement with federal authorities. The company argued that the New York legislation could still restrict its software even after the changes required under the federal agreement. It claimed the New York measure went further than addressing anticompetitive risks by imposing a blanket ban on algorithmic pricing tools.
Advocates for the legislation emphasized housing affordability as a key concern. They argued that landlords should avoid algorithms that consolidated data from multiple property owners to set rents, which could obscure market transparency. The judge’s preliminary injunction does not settle the case but prevents enforcement while legal proceedings continue.
