The rental market in Salt Lake City affected by AI

Although scientific and technological advances always lead to life and human development presenting increasingly higher quality, these progressions do not always improve all sectors of society equally. This time, we are talking about how artificial intelligence is impacting the real estate market in the states and major American metropolises.

Among the states currently affected by the famous and modern AI is the state of Utah and its important capital, Salt Lake City. According to current data, it has been proven that artificial intelligence could be negatively affecting its real estate market.

According to national figures, all the country’s inhabitants who do not own a home and have to live in a rented property must allocate almost a third of their monthly income to meet the rental contract payments.

This same situation was experienced until recently by the residents of Salt Lake City. There, according to previous market balances, a person with a rental contract had to allocate almost 30 percent of their monthly income to pay their rent.

Unfortunately, this situation recently changed in this city. Since companies and market developers started using AI in their operations, the situation for residents with rental contracts has worsened.

Recently, advocates for the right to affordable housing sued the real estate company RealPage, as according to the accusation, they are harming the population by artificially inflating rental values across the United States through their software.

According to Senator Nate Blouin, who believes that the strategies and software of the company in question are directly affecting Utah, which he represents, the system they use is altering the state’s rental values and recommending landlords impose high prices based on data aggregated by other real estate market competitors.

The disproportionate use of this software is creating an imbalance in the economy and the real estate market of the state of Utah, and more strongly in the city of Salt Lake City, as it allows any company or person to adjust rental prices based on unreal data to increase their profits, which would be infringing on the right of all citizens to affordable housing, said the senator.

Due to these unscrupulous rental price increases, residents of Salt Lake City now have to allocate approximately 36% of their monthly income to afford rental housing. This percentage increased due to the general and indiscriminate use of AI by landlords, builders, and market developers.

Due to these improper practices, RealPage and other digital platforms, which have also influenced the increase in rental housing prices, now face a federal lawsuit that fundamentally seeks to prohibit the use of AI for price setting in the real estate sector.

Available Foreclosures:

Salt Lake City: 120 homes available.

By Elias DaSilva | October 15, 2024.