Rent going up? One company’s algorithm could be why
This is mostly a distraction from the underlying issue. The algorithm helps sellers to maximize prices given the supply & demand so, yes, this probably is responsible for a few percentage points of increase in price, in the same way that price comparison websites are responsible for a small decrease in the price of car rentals.But the underlying problem here is the supply & demand! Rentals are competitive, an algorithm can't force people to pay more than an comparable rental property is charging.It's the lack of housing supply in areas like SF is responsible for rents being a multiple of what they could be.Developers want to build apartments, but are prevented from doing so by local regulations. So we need to change those regulations or, as is increasingly happening in the last couple of California's legislative sessions, take control away from local authorities (e.g. SF Board of Supervisors).