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Landlords Are Using AI to Raise Rents — And California Cities Are Leading the Pushback

Federal prosecutors say the practice amounts to “an unlawful information-sharing scheme” and some lawmakers throughout California are moving to curb it. San Diego’s City Council president is the latest to do so, proposing to prevent local apartment owners from using the pricing software, which he maintains is driving up housing costs.

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Gopixa for iStock.
Gopixa for iStock.

By Wendy Fry, CalMatters

If you’ve hunted for apartments recently and felt like all the rents were equally high, you’re not crazy: Many landlords now use a single company’s software — which uses an algorithm based on proprietary lease information — to help set rent prices.

Federal prosecutors say the practice amounts to “an unlawful information-sharing scheme” and some lawmakers throughout California are moving to curb it. San Diego’s City Council president is the latest to do so, proposing to prevent local apartment owners from using the pricing software, which he maintains is driving up housing costs.

San Diego’s proposed ordinance, now being drafted by the city attorney, comes after San Francisco supervisors in July enacted a similar, first-in-the-nation ban on “the sale or use of algorithmic devices to set rents or manage occupancy levels” for residences. San Jose is considering a similar approach.

And California and seven other states have also joined the federal prosecutors’ antitrust suit, which targets the leading rent-pricing platform, Texas-based RealPage. The complaint alleges that “RealPage is an algorithmic intermediary that collects, combines, and exploits landlords’ competitively sensitive information. And in so doing, it enriches itself and compliant landlords at the expense of renters who pay inflated prices…”

But state lawmakers this year failed to advance legislation by Bakersfield Democratic Sen. Melissa Hurtado that would have banned the use of any pricing algorithms based on nonpublic data provided by competing companies. She said she plans to bring the bill back during the next legislative session because of what she described as ongoing harms from such algorithms.

“We’ve got to make sure the economy is fair and … that every individual who wants a shot at creating a business has a shot without being destroyed along the way, and that we’re also protecting consumers because it is hurting the pocketbooks of everybody in one way or another,” said Hurtado.

RealPage has been a major impetus for all of the actions. The company counts as its customers landlords with thousands of apartment units across California. Some officials accuse the company of thwarting competition that would otherwise drive rents down, exacerbating the state’s housing shortage and driving up rents in the process.

“Every day, millions of Californians worry about keeping a roof over their head and RealPage has directly made it more difficult to do so,” said California Attorney General Rob Bonta in a written statement.

A RealPage spokesperson, Jennifer Bowcock, told CalMatters that a lack of housing supply, not the company’s technology, is the real problem — and that its technology benefits residents, property managers, and others associated with the rental market. The spokesperson later wrote that a “misplaced focus on nonpublic information is a distraction… that will only make San Francisco and San Diego’s historical problems worse.”

As for the federal lawsuit, the company called the claims in it “devoid of merit” and said it plans to “vigorously defend ourselves against these accusations.”

“We are disappointed that, after multiple years of education and cooperation on the antitrust matters concerning RealPage, the (Justice Department) has chosen this moment to pursue a lawsuit that seeks to scapegoat pro-competitive technology that has been used responsibly for years,” the company’s statement read in part. “RealPage’s revenue management software is purposely built to be legally compliant, and we have a long history of working constructively with the (department) to show that.””

The company’s challenges will only grow if pricing software becomes another instance in which California lawmakers lead the nation. Following San Francisco’s ban, the Philadelphia City Council passed a ban on algorithmic rental price-fixing with a veto-proof vote last month. New Jersey has been considering its own ban.

Is It Price-fixing — or Coaching Landlords?

According to federal prosecutors, RealPage controls 80% of the market for commercial revenue management software. Its product is called YieldStar, and its successor is AI Revenue Management, which uses much of the same codebase as YieldStar, but has more precise forecasting. RealPage told CalMatters it serves only 10% of the rental markets in both San Francisco and San Diego, across its three revenue management software products.

Here’s how it works:

In order to use YieldStar and AIRM, landlords have historically provided RealPage with their own private data from their rental applications, rent prices, executed new leases, renewal offers and acceptances, and estimates of future occupancy, although a recent change allows landlords to choose to share only public data.

This information from all participating landlords in an area is then pooled and run through mathematical forecasting to generate pricing recommendations for the landlords and for their competitors.

San Diego City Council President Sean Elo-Rivera, explained it like this:

“In the simplest terms, what this platform is doing is providing what we think of as that dark, smoky room for big companies to get together and set prices,” he said. “The technology is being used as a way of keeping an arm’s length from one big company to the other. But that’s an illusion.”

In the company’s own words, from company documents included in the lawsuit, RealPage “ensures that (landlords) are driving every possible opportunity to increase price even in the most downward trending or unexpected conditions.” The company also said in the documents that it “helps curb (landlords’) instincts to respond to down-market conditions by either dramatically lowering price or by holding price.”

Providing rent guidance isn’t the only service RealPage has offered landlords. In 2020, a Markup and New York Times investigation found that RealPage, alongside other companies, used faulty computer algorithms to do automated background checks on tenants. As a result, tenants were associated with criminal charges they never faced, and denied homes.

Impact on Tenants

The attorneys general of eight states, including California, joined the Justice Department’s antitrust suit, filed in U.S. District Court for the Middle District of North Carolina.

The California Justice Department contends RealPage artificially inflated prices to keep them above a certain minimum level, said department spokesperson Elissa Perez. This was particularly harmful given the high cost of housing in the state, she added. “The illegally maintained profits that result from these price alignment schemes come out of the pockets of the people that can least afford it.”

Renters make up a larger share of households in California than in the rest of the country —  44% here compared to 35% nationwide. The Golden State also has a higher percentage of renters than any state other than New York, according to the latest U.S. Census data.

The recent ranks of California legislators, however, have included few renters: As of 2019, CalMatters could find only one state lawmaker who did not own a home — and found that more than a quarter of legislators at the time were landlords.

The State Has Invested in RealPage

Private equity giant Thoma Bravo acquired RealPage in January 2021 through two funds that have hundreds of millions of dollars in investments from California public pension funds, including the California Public Employees’ Retirement System, the California State Teachers’ Retirement System, the Regents of the University of California and the Los Angeles police and fire pension funds, according to Private Equity Stakeholder Project.

“They’re invested in things that are directly hurting their pensioners,” said K Agbebiyi, a senior housing campaign coordinator with the Private Equity Stakeholder Project, a nonprofit private equity watchdog that produced a report about corporate landlords’ impact on rental hikes in San Diego.

RealPage argues that landlords are free to reject the price recommendations generated by its software.

RealPage argues that landlords are free to reject the price recommendations generated by its software. But the U.S. Justice Department alleges that trying to do so requires a series of steps, including a conversation with a RealPage pricing adviser. The advisers try to “stop property managers from acting on emotions,” according to the department’s lawsuit.

If a property manager disagrees with the price the algorithm suggests and wants to decrease rent rather than increase it, a pricing advisor will “escalate the dispute to the manager’s superior,” prosecutors allege in the suit.

Black History

IN MEMORIAM: Marcia Ann Gillespie, Editor of Essence and Ms. Magazines, Dies at 82

Marcia Ann Gillespie, the trailblazing journalist who served as the first editor-in-chief of Essence magazine, has died at age 82. After joining the publication at its inception in 1970, Gillespie spent a decade elevating the beauty and voices of Black women during a pivotal era of self-love and cultural revolution. She later broke barriers as the first Black woman to lead Ms. magazine, further solidifying her status as a titan of the publishing industry. Her expansive career also included authorship and teaching, leaving a profound impact on American media. Read more.

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Marcia Ann Gillespie. Facebook photo.

Marcia Anna Gillespie, the first editor in chief of Essence magazine, has died. She was 82.

Born in Rockville Centre, New York, in 1944. The daughter of a church sexton/small business owner and domestic worker/caterer, Gillespie parlayed her degree in American studies from Illinois’s Lake Forest College into a research job at Time-Life Books, Inc. in New York.

There she advocated for fairness and inclusion of Black life in its publications. When the owners of the standard bearer of Black life, Ebony magazine, ventured into creating a special publication for young, Black women, Gillespie was hired as managing editor in 1970, and became editor-in-chief a year later at the young age of 26.

At the time, the venture by the Johnson family – the owners of Ebony magazine and Jet – into creating a publication for young Black women met the growing revolution of self-love in the Black community.

In other words, the battle cry of the late 1960s, “Black is Beautiful,” had a place to be seen and not just heard.

Thousands of young women who had already abandoned straightening combs and European aesthetics learned more ways to wear their natural hair from Afros to cornrows. Young Black designers got a place in the spotlight not just in clothing but jewelry that expressed neo-African ideals. But one of the most important impacts was the magazine’s unapologetic elevation of the beauty of the dark-skinned Black female to the status she deserved.

Under Gillepie’s tenure, Essence championed storytelling that celebrated Black women’s identities, experiences, and contributions at a time when their voices were often overlooked in mainstream media,” Essence wrote in a statement posted to Instagram

For 10 years she steered the fledgling publication before joining Ms. Magazine as a contributor in 1980 later becoming the first Black woman to edit a mainstream American magazine when she took charge in 1992.

In 1998, she helped secure the publication’s future through a women-led ownership group. She stayed at Ms. In various capacities until 2001, during which time the magazine had the most diverse readership in its history.

She also mentored future Essence editor Susan L. Taylor and taught young journalists at SUNY Old Westbury.

Emmy-winning actor Sheryl Lee Ralph took to social media to honor Gillespie’s life. 

“Rest in peace, dear Marcia Gillespie,” she wrote on Threads. “Your voice, your brilliance, and your commitment to lifting up Black women leaves a legacy that will continue to inspire me and so many others.”

A professor at SUNY Old Westbury and Bennett College, she also co-authored the authorized biography “Maya Angelou: A Glorious Celebration” in 2008.

According to Wikipedia, she also served on various boards as a director or advisor, including: “…the Arthur Ashe Institute of Urban Health, the Black & Jewish Women of New York, the Violence Policy Center in Washington, D.C., Aspen Institute, …and the Studio Museum of Harlem. Gillespie is a member of the National Council of Negro Women and the American Association of Magazine Editors.”

She was the recipient of several awards, including: the Lake Forest College Outstanding Alumni Award (1973), the New York Women in Communications Matrix Award (1978); a Lifetime Achievement Award from the New York Association of Black Journalists for print journalism (1982); a ‘Top Ten Outstanding Women in Magazine Publishing’ recognition by the March of Dimes.

In later years she was inducted into the American Society of Magazine Editors’ Hall of Fame (2002); the NAACP President’s Award (2006) and the Barbara Graves Legacy Award at the Black Enterprise Women of Power Summit in 2017.

The conclusion for her online obituary reads: “She leaves behind a legacy written not just in the pages she edited, but in every editor, journalist, and reader who found themselves — finally — in the stories she chose to tell.”

Online sources for this report include “The History Makers,” The Washington Informer, Wikipedia, Essence magazine, Ms. Magazine and her obituary.

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Business

Oakland Latino Chamber of Commerce Hosts Statewide Convention, Generating $3 Million in Economic Impact

The Oakland Latino Chamber of Commerce recently hosted the 47th Annual California Hispanic Chambers of Commerce Statewide Convention, drawing more than 1,000 attendees to the city. The event generated an estimated $3 million economic impact, benefiting local retailers, hotels, and small businesses throughout the region. Organized in partnership with Visit Oakland, the convention featured a marketplace for local entrepreneurs and focused on advancing economic prosperity for Latino-owned businesses. Several innovative features were introduced during the summit to provide lasting resources for the state’s business community, read more.

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Cutting the ribbon at the California Chamber of Commerce (CHCC) last month were CHCC Northern Region Director Mayra Perez, Aliza Gallo, Oakland Latino Chamber President CHCC Foundation Chairman David Betancourt, CHCC Madam Chair Veronica Corona, CHCC President & CEO Julian Canete and CHCC Northern Region Chair Leo Callejas. Courtesy photo.

The Oakland Latino Chamber of Commerce (OLCC) recently served as the Host Chamber for the 47th Annual California Hispanic Chambers of Commerce (CHCC) Statewide Convention, held in Oakland in August 2026.

The Convention welcomed more than 1,000 attendees from throughout California and generated an estimated $3 million economic impact for the City of Oakland, providing significant support to local hotels, restaurants, transportation providers, retailers, and small businesses.

In conjunction with Visit Oakland, OLCC brought in various local sponsors and worked closely with the California Hispanic Chamber of Commerce, to make the Oakland Convention a success.

The success of the 47th Annual CHCC Statewide Convention demonstrates what is possible when business leaders, entrepreneurs, community organizations, and public partners work together with a shared vision, said Aliza Gallo, president of the OLCC.

“By welcoming more than 1,000 attendees and generating an estimated $3 million economic impact, we not only showcased Oakland as a premier destination for business and innovation but also created lasting opportunities for local businesses and entrepreneurs,” said Gallo, who also served as co-host of the event.

She adds that the “convention elevated Oakland’s visibility, strengthened statewide and local partnerships, and reinforced the Oakland Latino Chamber of Commerce’s commitment to advancing economic prosperity for our members and our community.”

As part of its leadership role, OLCC introduced two innovative features designed to extend the convention’s impact beyond the event itself. Conference workshops were recorded and made available for continued learning and professional development.

These recordings will be shared with OLCC members and made available for broader public access, expanding educational opportunities for businesses and entrepreneurs throughout California. The workshop content will also be distributed to the 85 Latino Chambers and Affiliate Members within the CHCC network, which collectively is 135 member organizations statewide.

In addition, OLCC created and managed the Oakland Mercadito, a vibrant marketplace showcasing local Latino and Latina entrepreneurs. The Mercadito provided small business owners with an opportunity to market their products and services, connect with new customers, and gain exposure to business and community leaders from across the state.

The initiative highlighted Oakland’s entrepreneurial talent and demonstrated OLCC’s commitment to supporting small business growth and economic opportunity.

“Oakland is one of the most diverse cities in the United States” commented Peter Gamez, president & CEO of Visit Oakland. “Our city’s celebration of culture makes everyone feel they belong here and allows for truly authentic experiences.

“Our diversity is a powerful draw for groups and individual visitors. We are extremely proud of this and continue to cultivate and grow this message as we welcome conferences and conventions to The Town,” Gamez said. 

For more information, see the Visit Oakland video about the CHCC Convention In Oakland: https://lnkd.in/p/eRpe2sYD 

The Oakland Latino Chamber of Commerce is the source of this story.

About The Oakland Latino Chamber of Commerce

Oakland Latino Chamber of Commerce (OLCC) www.oaklandlatinochamber.com is dedicated to advancing economic opportunity, strengthening business capacity, and elevating the visibility of Latino-owned businesses throughout Oakland and the East Bay. Through advocacy, partnerships, technical assistance, and community engagement, OLCC works to ensure that Latino entrepreneurs have the resources and support necessary to thrive. 

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Black History

Five Hospitals Said No! Who Will Help Annette Henry Recover?

Annette Henry, a 67-year-old Oakland woman, is struggling to access essential medical care after a devastating stroke left her with a rare neuropathic pain syndrome. Despite medical documentation confirming her need for inpatient rehabilitation, five different Bay Area hospitals have denied her admission, often citing her inability to meet rigid therapy thresholds. Her family’s efforts to seek intervention from state and federal lawmakers have yielded no results, leaving Henry at home without a clear path to recovery. To see how these systemic failures are impacting her health, read more.

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Annette Henry. Photo by Mario Decuir.

A tangle of red tape and contradictions between health providers and Medicare rules have impeded an Oakland woman’s ability to recover from a stroke she had last year.

Her family – who are her caretakers – have reached out to various professionals and state and federal lawmakers for help to no avail.

At 67, Annette Henry needs inpatient stroke rehabilitation after a devastating stroke in May 2025. Since then, multiple Bay Area hospitals have denied it. She was accepted into a rehabilitation facility in June 2025 but discharged prematurely in July, in essentially the same condition.

Three hospitals where she was a patient pushed skilled nursing over inpatient rehabilitation. Two more declined referrals.

Now at home, Henry is caught in a system that measures her need for treatment against the limitations treatment should address.

Medical professionals have documented her need for a higher level of care.

In August 2025, a Medicare Quality Improvement Organization (QIO) overturned Henry’s discharge from an inpatient rehabilitation facility (IRF).

The QIO’s independent physician reviewer found she had not received the “intensive therapy program outlined on admission,” according to the Aug. 30, 2025, determination letter. Yet the decision did not secure her readmission or guarantee continued rehabilitation.

Henry has central post-stroke pain, a rare neuropathic pain syndrome that can make movement and touch intensely painful. Her pain specialist recommended inpatient rehabilitation alongside pain management.

Nevertheless, facilities have cited her inability to tolerate three hours of daily therapy as a reason to deny inpatient rehabilitation.

That practice raises questions about Medicare coverage policy. In Hooper v. Sullivan, No. H-80-99 (D. Conn. 1989), the court recorded the parties’ agreement that denials based on numerical utilization screens, diagnostic screens, treatment norms, the “three-hour rule,” or other “rules of thumb” were not appropriate.

CMS subsequently cited Hooper in its Aug. 7, 2009, final rule (74 Fed. Reg. 39762, 39794). The policy is also addressed in the Medicare Benefit Policy Manual, Chapter 1, Section 110, and CMS’s June 1 Review Choice Demonstration for IRF Services: Operational Guide.

These authorities underscore the need for individualized assessments rather than rigid numerical thresholds.

The central contradiction is stark: the pain and disability that make rehabilitation necessary have been cited as reasons to deny it. UCSF Stanyan’s April 7 discharge summary for Henry states that acute rehabilitation unit (ARU) placement was declined for “inability to tolerate three hours of therapy daily.” Without appropriate treatment, Henry risks further decline.

Her records document complications associated with prolonged immobility.

Orthopedics documented flexion contractures of the small and ring fingers on March 19.

Chest imaging on April 1 showed bibasilar dependent atelectasis, a condition involving reduced inflation of the lower portions of both lungs. These concerns can be examined through her medical records and photographs.

“What does a ‘not reasonable’ discharge look like?” her family asks. For them, it looks like an appeal decision recognizing a problem without ensuring a remedy: repeated referrals, denials and a patient still without the rehabilitation her treating professionals have recommended.

The family has sought help from the California Department of Public Health and the federal Office for Civil Rights to no avail. They contacted U.S. Rep. Lateefah Simon in June 2025, while Henry was in rehabilitation; Senator Alex Padilla in May 2026; and Senator Adam Schiff in September 2026.

DeCuir says the family received no meaningful assistance and was redirected to the QIO or advised working with a social worker after Henry had already been discharged.

The consequences extend beyond rehabilitation. The family reports that Henry has struggled to attend in-person specialist or any appointments and needs in-person evaluation and treatment for complications, recommended evaluations, health screenings and preventive care.

Her mobility limitations have become barriers to broader medical care.  Every office tells her their office is not set up to accommodate her.  This has happened with specialty care, out-patient services, screenings and physical therapy.

Henry is a Black woman on Medicare, and her family believes her experience raises concerns about unequal access to intensive rehabilitation. Research has documented disparities in discharge to inpatient rehabilitation rather than skilled nursing, underscoring the importance of individualized review.

CMS, state regulators and healthcare providers should examine Henry’s records, assess her needs on their clinical merits and explain how the applicable coverage standards were applied, and whether they are being enforced.

Rehabilitation is not a reward for patients who can already tolerate treatment. It is care intended to help people recover function. Henry’s case asks whether a system designed to support recovery can leave a patient without a path to it.

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