Pull to refresh
Logo
What Changed
Following Why Sign Up
Federal judge blocks New York's rent-setting software ban

Federal judge blocks New York's rent-setting software ban

Rule Changes

RealPage and New York trade filings over the injunction, which stays in place while the judge decides whether to reconsider

November 3rd, 2026: New York presses its reconsideration bid

Overview

Updated 6 days ago

RealPage asked a federal judge on October 28 to leave the injunction in place, and New York's attorney general replied on November 3, urging the court to reconsider. The request to revive the state's ban on algorithmic rent-setting is now fully briefed and waiting on Judge Valerie Caproni.

The September 29 injunction blocks Section 3 of the law, which treats rent recommendations from software as an unlawful agreement. A separate provision barring software that helps landlords coordinate prices remains in force. New York had not appealed to the Second Circuit as of October 20.

Why it matters

Landlords in New York can keep using algorithmic rent tools critics say inflate prices in the state's tightest housing markets.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

§340-b(3)
Provision blocked
Judge Caproni enjoined the section that treats rent-setting based on software recommendations as an unlawful agreement. The ban on facilitating landlord collusion remains in force.
Nov 3, 2026
State reply filed
New York's attorney general answered RealPage's opposition, keeping its request to vacate the injunction alive.
Pending
Reconsideration ruling
Judge Caproni has not ruled on New York's motion to reconsider the September 29 injunction.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

Valerie Caproni
Valerie Caproni
US District Judge, Southern District of New York
Presiding over RealPage v. James; reconsideration motion pending
 Letitia James
Letitia James
New York Attorney General
Defending the law; filed a reply on November 3, 2026 supporting her request to vacate the injunction
 Brad Hoylman-Sigal
Brad Hoylman-Sigal
Manhattan Borough President; former New York State Senator
Sponsored the rent-setting software ban
 Kathy Hochul
Kathy Hochul
Governor of New York
Signed the law in October 2025

Organizations Involved

RealPage
RealPage
Software Company
Plaintiff; won preliminary injunction; opposed New York's reconsideration request on October 28

RealPage licenses revenue management software that recommends rental prices and lease terms to landlords.
Thoma Bravo
Thoma Bravo
Private Equity Firm
Owner of RealPage

Thoma Bravo is the private equity firm that owns RealPage.
U.S. Department of Justice
U.S. Department of Justice
Federal agency
Settled antitrust case against RealPage

The Justice Department reached an antitrust settlement with RealPage over its rent-setting software.
New York State
New York State
State government
Defendant; Section 3 blocked; pressed reconsideration in a November 3 reply

New York enacted the first state ban on algorithmic rent-setting software.

Timeline

October 2025 November 2026

10 events Latest: November 3rd, 2026 · 1 week ago
Tap a bar to jump to that date

  1. New York presses its reconsideration bid

    Latest Legal

    Attorney General Letitia James filed a reply supporting her motion to reconsider the injunction, arguing RealPage's opposition did not explain why reconsideration is unwarranted when a court order overlooks part of the record.

  2. RealPage urges court to keep injunction

    Legal

    RealPage filed a brief asking the Southern District of New York to stand by its ruling that blocked New York from enforcing Section 3 of the rent-software law.

  3. Tennessee court approves $359.8 million RealPage settlement

    Legal

    A federal judge in the Middle District of Tennessee approved a combined $359.8 million settlement in the consolidated RealPage rental software antitrust case. Settling landlords agreed to stop feeding nonpublic occupancy and pricing data into RealPage's revenue management platform.

  4. New York asks judge to reconsider rent-software injunction

    Legal

    Attorney General Letitia James asked the court to vacate the injunction, saying the ruling overlooked the state's evidence that the law covers public and non-public data. The state also answered RealPage's complaint and sought its dismissal.

  5. Judge blocks New York rent-setting software ban

    Legal

    Judge Caproni grants a preliminary injunction on § 340-b(3) and denies the state's motion to dismiss, calling the merits a close call.

  6. DOJ enters final judgment against RealPage

    Legal

    Antitrust settlement finalized; RealPage to stop using non-public competitor data by November 15.

  7. New York moves to dismiss

    Legal

    Attorney General Letitia James files a motion to dismiss RealPage's challenge.

  8. RealPage moves for preliminary injunction

    Legal

    Company asks the court to block enforcement while the case proceeds.

  9. RealPage sues New York

    Legal

    RealPage files suit two days after the Justice Department announced a proposed antitrust settlement with the company, arguing the law violates free speech.

  10. New York signs nation's first rent-software ban

    Legislation

    Governor Kathy Hochul signs General Business Law § 340-b, banning algorithmic rent-setting tools.

Scenarios

1

RealPage wins permanent injunction; New York law dies

Possible Resolves by Q2 2027

Discussed by: RealPage and its counsel; the judge's opinion notes the company has a plausible case

If RealPage prevails at trial, the statute's core provision is struck down as an unconstitutional restraint on commercial speech. Judge Caproni already signaled a narrower law limited to non-public data could survive, so a full victory would turn on whether New York can justify restricting recommendations based on public market information.

2

Appeals court overturns injunction; law takes effect

Unlikely Resolves by Q2 2027

Discussed by: New York Attorney General's office; the judge called RealPage only marginally likely to succeed

The Second Circuit could reverse, finding the law regulates conduct rather than speech, or that the state's housing affordability interest justifies the restriction. Caproni left that door open by noting a stronger record could sustain the law.

3

New York amends the law to target non-public data

Possible Resolves by Q2 2027

Discussed by: The American Counsel's analysis; the judge flagged this as a viable narrower measure

State lawmakers could rewrite § 340-b to limit the ban to software using non-public competitor data, aligning with RealPage's DOJ settlement and dodging the commercial speech problem the court identified.

4

Judge Caproni grants reconsideration and revives the ban

Unlikely Resolves by End of 2026

Discussed by: New York Attorney General's office, in its October 13 motion

The state argues the injunction overlooked its submissions showing Section 3 reaches both public and non-public data, which it says establishes a reasonable fit with its interest in stopping price fixing. Caproni called the case close and left open that a stronger record could sustain the law.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June 1980

Central Hudson Gas & Electric v. Public Service Commission (1980)

The Supreme Court struck down New York's ban on utility advertising promoting electricity use, and established a four-part intermediate scrutiny test for commercial speech. The test requires the government to show a substantial interest, that the regulation directly advances it, and that it is not more extensive than necessary.

Then

The ruling allowed utilities to advertise again and gave courts a framework for weighing speech restrictions against state interests.

Now

The Central Hudson test became the default standard for commercial speech cases, including advertising, professional regulation, and now algorithmic pricing.

Why this matters now

Judge Caproni applied the Central Hudson framework to New York's rent-software ban, finding the law likely burdens protected commercial speech more than necessary.

April 2015

US v. Topkins (2015)

David Topkins, an Amazon marketplace seller, pleaded guilty to using pricing algorithms to fix the prices of posters sold online. It was the first criminal antitrust prosecution for algorithmic price fixing.

Then

Topkins agreed to pay a fine and cooperate, and the case established that using software to coordinate prices can be prosecuted as a conspiracy.

Now

The case set the precedent that algorithms could facilitate price fixing, leading to civil lawsuits against landlords using RealPage's software.

Why this matters now

The same algorithmic coordination concern drove the DOJ's case against RealPage and New York's law, which the judge ruled goes too far by punishing ordinary reliance on software recommendations.

November 2025 - May 2026

RealPage antitrust settlement (2025-2026)

The Justice Department reached a settlement with RealPage, whose revenue management software was accused of helping landlords coordinate rents. Final judgment was entered May 19, 2026; RealPage agreed to stop using non-public competitor data in its recommendations, effective November 15, 2026.

Then

RealPage faced new restrictions on its data use and agreed to comply before the November 15, 2026 effective date.

Now

The settlement defined the federal boundary for what algorithmic pricing tools can do, while leaving state regulation to vary.

Why this matters now

RealPage sued New York two days after reaching this settlement, creating parallel federal and state battles over the same software.

Sources

(16)
+10
Reuters via Investing.com Bloomberg Law Law360 LexCircuit MLex The American Counsel Global Competition Review Venable LLP Southern District of New York Information Technology and Innovation Foundation Realty Today Bloomberg Law New York Brief Law360 MLex Law360 MLex