AI Rent Algorithms: Hacking Personal Data and Privacy in the RealPage vs. New York Fight

Guest Editorial by Stefanie Schappert, Senior Journalist, Cybernews

While most Americans were focused on family and Turkey dinners last week, the online property management platform RealPage was filing a major lawsuit against New York over the state’s upcoming ban on the company’s AI price-fixing software (set to take effect December 15th). 

Stefanie Schappert

From apartment rentals, luxury goods, concert tickets, and even your Uber ride, the first-of-its-kind lawsuit is expected to upend how the average consumer pays for goods and services in their everyday life – and determine whether AI pricing algorithms are here to stay. 

The AI Algorithm That Raises Your Rent

Algorithms aren’t just a tool for convenience, but can quietly control markets and manipulate people’s lives. 

The RealPage vs NY lawsuit makes that crystal clear. The company, which provides software to 80% of landlords across the US, has been at the center of a Department of Justice (DOJ) antitrust case accusing RealPage of aggregating data scraped by its AI software to set market rental rates at the expense of consumers. 

Tenant advocates say the software, which is used by a majority of landlords from the same regions, effectively fixes prices, driving rents higher and leaving renters with few options. 

Last week, the DOJ settled its 2024 case against RealPage, requiring the company to make significant changes to how it handles data, including preventing it from collecting and sharing competitively sensitive information.

The initial DOJ case and a similar suit brought by Tennessee against RealPage on behalf of nearly 30 renters (they won $142 million in damages) prompted nearly a dozen cities and states to begin enacting their own bans on AI rent-setting software in 2025.

Now, RealPage is fighting back, seeking to block New York’s ban, claiming it violates the company’s First Amendment rights. 

From a cybersecurity perspective, this is more than just a legal battle; it’s a warning about the risks of opaque AI systems. 

RealPage’s software doesn’t just calculate prices; it analyzes massive amounts of personal and financial data, turning it into leverage against the more than 110 million renters across the US. 

Imagine the algorithm reading your income, rental history, neighborhood demographics, and even past payment patterns, and then deciding exactly how much to charge you. 

That’s not just automation – it’s a system that can exploit people in ways most of us can’t see or challenge. And this is far from an isolated example. 

Other Examples

Airlines like Delta have been actively experimenting with AI to adjust ticket prices in real time and have announced plans to install their “AI dynamic pricing model” across the entire ticketing system next year. 

You’ve probably already noticed that flights jump in price depending on when and what time you search or book. Hotels, rideshares, and online retailers do the same, constantly tweaking prices based on demand, your location, or even your browsing behavior. 

On the surface, it’s about efficiency. But underneath, these systems are quietly turning data into power, often benefiting companies at the expense of consumers, who rarely understand how these algorithms actually work. 

The RealPage case is particularly striking because housing is a basic human need. Unlike a plane ticket or hotel stay, your rent affects your stability, your budget, and even your ability to save for the future. 

When algorithms are allowed to exploit personal data in this way, the consequences can be serious and immediate. 

AI systems are not neutral. Every dataset they consume carries the potential to harm, and without oversight, these invisible systems can silently manipulate markets, impacting people’s lives.

For anyone paying rent, booking flights, or shopping online, this is a wake-up call. 

The DOJ settlement is a step toward accountability, but it’s also a broader signal: the algorithms shaping our daily lives need scrutiny, regulation, and transparency. 

The RealPage lawsuit against New York State underscores the tension between innovation, corporate freedom, and public accountability. It is also expected to set a legal precedent for how companies will be allowed to use AI pricing algorithms moving forward.  

If RealPage succeeds, it may open the door for corporations in other industries to challenge state-level AI restrictions, from hospitality to car insurance. 

AI can make life easier, but without careful oversight, it can also turn data into a weapon against ordinary people.

As stated by then-US Deputy Attorney General Lisa Monaco last year, “Training a machine to break the law is still breaking the law.”

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Stefanie Schappert, MSCY, CC, Senior Journalist at Cybernews, is an accomplished writer with an M.S. in cybersecurity, immersed in the security world since 2019.  She has a decade-plus experience in America’s #1 news market working for Fox News, Gannett, Blaze Media, Verizon Fios1, and NY1 News.  With a strong focus on national security, data breaches, trending threats, hacker groups, global issues, and women in tech, she is also a commentator for live panels, podcasts, radio, and TV. Earned the ISC2 Certified in Cybersecurity (CC) certification as part of the initial CC pilot program, participated in numerous Capture-the-Flag (CTF) competitions, and took 3rd place in Temple University's International Social Engineering Pen Testing Competition, sponsored by Google.  Member of Women’s Society of Cyberjutsu (WSC), Upsilon Pi Epsilon (UPE) International Honor Society for Computing and Information Disciplines.