§ 7.34.010 — Findings

7.34.010 - Findings

A. The prevalence of new software programs, often referred to as "algorithmic devices," has increased over the past several years. B. These devices allow landlords to indirectly coordinate with each other by sharing non-public, sensitive, and proprietary information to the software program, which then recommends rental rates and occupancy levels. C. In 2022, an investigation by ProPublica into companies with such software showed that for "one neighborhood in Seattle, ProPublica found, 70 percent of apartments were overseen by just ten property managers, every single one of which used pricing software sold by RealPage." D. Use of such software by landlords likely drives up rent and vacancies and may be illegal price-fixing. E. As of 2019, renters outnumber homeowners in Seattle. F. Substantial increases in rent are one of the reasons for the increase in the share of renter households who are cost burdened (defined by HUD as spending more than 30 percent of gross income on housing cost), with average monthly rents increasing by 32 percent, after adjusting for inflation, between 2012 and 2022. G. The Attorney General estimates that about 800,000 leases in Washington were priced using RealPage software between 2017 and 2024. H. The City has an interest in protecting consumers as well as addressing factors that artificially inflate an already high demand for rental housing.

(Ord. 127241, § 1, 2025.)