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What Next TBD: When An Algorithm Raises Your Rent

Slate News

Slate Podcasts

News, News Commentary, Politics

4.66K Ratings

🗓️ 21 October 2022

⏱️ 35 minutes

🧾️ Download transcript

Summary

One company’s software is helping set prices for apartments across the country. But when does an algorithm telling landlords how much to charge—by drawing on property data—cross the line from “handy tool” to “illegal price-fixing”? Guest: Heather Vogell, reporter with ProPublica Host: Lizzie O'Leary If you enjoy this show, please consider signing up for Slate Plus. Slate Plus members get benefits like zero ads on any Slate podcast, bonus episodes of shows like Slow Burn and Dear Prudence—and you’ll be supporting the work we do here on What Next TBD. Sign up now at slate.com/whatnextplus to help support our work. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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1:22.0

Heather, why don't you just go ahead and introduce yourself. Tell me who you are and what you do.

1:27.0

I'm Heather Vogel. I'm a reporter with ProPublica and I've been investigating the rental market for the last year.

1:34.0

Heather owns a home now, one that she bought in 2019. But before that, she both rented and owned.

1:40.0

When you were a renter, did you ever give thought to like how your rent was calculated?

1:47.0

No, I never would have suspected that there was any type of sort of big data being used to come up with these prices.

1:58.0

I always just assumed it was some leasing agent saying, hmm, I think we can, you know, the market's pretty good.

2:05.0

I think we can go up a little bit more or whatever. But yeah, this was a complete surprise to me.

2:13.0

The surprise is what Heather has been investigating. It's the use of algorithms to set and increase rental prices at apartments owned by some of the biggest management companies in the country.

2:24.0

It was something she stumbled on while reporting a story on private equity firms in the housing market.

2:30.0

A tenant in Seattle emailed her because he was shocked by his own rent increases.

2:35.0

He'd been a loan broker and a bank examiner, so he knew the world of real estate and finance.

...

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