Tech With Purpose: Pricing Software Supports Housing Affordability

The housing market is not broken because of technology; in fact, it is evolving through it. As policymakers explore how to regulate artificial intelligence (AI) in real estate, it is essential they distinguish between tools that enhance efficiency and policies that unintentionally create barriers. 

At the Real Estate Technology & Transformation Center (RETTC), we believe this moment calls for thoughtful leadership. Housing affordability remains a significant challenge, and technology offers practical, scalable solutions that can improve transparency, responsiveness, and access in rental housing. Pricing software is one such solution. 

How Pricing Software Works for Everyone 
Pricing software, sometimes powered by AI, aggregates real-time data and applies algorithmic analysis to help housing providers better understand local demand. When demand increases, the software may recommend rent adjustments, and when units remain vacant, it often suggests price reductions. This dynamic pricing approach promotes efficiency and provides greater flexibility for both housing providers and renters. 

While it may seem cutting-edge, the concept behind pricing software has been widely used across industries for decades, including in hospitality, aviation, and finance. Even more relevant to housing policy, the U.S. Department of Housing and Urban Development (HUD) has long relied on similar algorithmic tools to calculate Fair Market Rents under the Section 8 Housing Choice Voucher Program. These tools account for factors such as average local rents and available inventory—just like modern pricing software does today. 

Regulation Must Align with Innovation 
Despite the long-standing use of such tools, recent state and local level proposals have sought to ban or heavily restrict pricing software. However, not all lawmakers are rushing to regulate without understanding the implications. On May 29, Colorado Governor Jared Polis vetoed legislation that would have prohibited many types of algorithmic pricing technologies in rental housing. 

He recognized that banning these technologies could harm housing providers and reduce available supply, stating "We should not inadvertently take a tool off the table that could identify vacancies and provide consumers with meaningful data to help efficiently manage residential real estate to ensure people can access housing.” In response to concerns of collusion, “To be clear, if that is occurring, it already violates the Colorado Antitrust Act...Reducing market friction through legitimate means that do not entail collusion is good for both renters and landlords.” His decision reflects a growing understanding that pricing software supports—not obstructs—housing access and market function. 

In Washington, federal leaders have been debating how best to prevent a fragmented regulatory landscape that would discourage adoption of helpful technologies and delay progress on housing challenges. Many leaders in Congress understand that a patchwork of 50+ different AI regulations at the state level is inconsistent and could cause serious harm and stifle economic innovation, but there is still work to be done. 

Technology Alone Isn’t Enough
While we strongly support innovation, we also recognize that technology is only one part of the solution. The core issue remains a chronic shortage of housing. To make a real impact on affordability, communities must embrace policies that expand supply. That means reforming outdated zoning laws, accelerating permitting timelines, and offering tax incentives that make the development of affordable housing economically viable. 

If elected officials are serious about affordability, they must pursue reforms that enable more housing to be built. Without those changes, even the most advanced tools will fall short. 

Building Smarter, Fairer Housing Markets 
This is a pivotal moment for rental housing. Technology gives us the opportunity to make markets more transparent, responsive, and resident-focused. Rather than retreating from innovation, we should be leaning into it—ensuring it is applied responsibly and regulated with precision. 

RETTC remains committed to ensuring real estate technology serves renters, providers and communities alike. By combining smart regulation with smart tools, we can create a housing market that works better for everyone. 

Let’s choose progress. Let’s build with purpose.