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RealPage Wins Preliminary Injunction Against New York Algorithmic Rent-Setting Ban

By  |  September 30, 2026
real estate

A federal judge has temporarily blocked part of a New York law restricting the use of algorithmic tools to set residential rents, handing RealPage an early victory in its legal challenge to the measure.

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    U.S. District Judge Valerie Caproni granted RealPage’s request for a preliminary injunction and rejected a motion by New York Attorney General Letitia James to dismiss the company’s lawsuit, according to a Sept. 29 report by MLex.

    The ruling centers on a provision of the New York statute that bars residential property owners from setting rental terms based on recommendations generated by software performing what the law describes as a coordinating function, MLex reported.

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    Caproni concluded at this stage of the litigation that RealPage had narrowly demonstrated a likelihood of prevailing on the merits of its challenge. According to MLex, the judge said it was a close question but found the company was “marginally” likely to succeed.

    A key issue for the court was the scope of Section 3 of the law. The provision applies to covered rent-setting software without distinguishing between systems that rely on publicly available information and those that use nonpublic data, according to MLex’s account of the court order. That lack of distinction supported RealPage’s argument that the provision could be invalid on its face, the publication reported.

    Related: Kentucky Settles Antitrust Claims Against Greystar in RealPage Rent-Setting Case

    The preliminary injunction does not amount to a final judgment in RealPage’s favor. Rather, it restricts enforcement of the challenged provision while the lawsuit proceeds, after the court determined that the company had met the standard required for preliminary relief.

    The dispute adds to the legal scrutiny surrounding software used by landlords and property managers to inform rental pricing. RealPage’s challenge in New York focuses on whether the state can impose restrictions broadly on such technology, including when the underlying recommendations are based on information available to the public.

    The Sept. 29 decision allows RealPage’s case to move forward despite the attorney general’s effort to have it dismissed, according to MLex. The court’s ultimate determination on the validity of the New York restrictions will depend on subsequent proceedings in the case.

    Source: MLex.