Watchdog probes whether landlords are using AI to manipulate rental rates
Canadian regulators are investigating whether landlords are using AI-driven software to influence rental prices, a practice that has already triggered legal action in the United States.
The Competition Bureau confirmed it is looking into AI-driven rent-setting tools, which allow landlords to analyse competitor pricing and adjust their own rates accordingly. Critics argued that these tools could be contributing to inflated rents by reducing competition.
“If we find evidence of activities that could raise concerns under the law, we will take action,” Competition Bureau spokesperson Cloé Bouchard said in a statement.
Concerns over AI’s influence on rental markets gained momentum after a high-profile antitrust lawsuit in the United States. The suit alleges that major property owners used software from Texas-based RealPage’s YieldStar platform to coordinate rental pricing, effectively limiting competition.
The US Justice Department expanded the lawsuit last month, adding six more corporate landlords to the list of defendants. The suit claims landlords shared sensitive pricing data, allowing AI algorithms to set rates that pushed rents higher than they would have been under normal market conditions.
The case has drawn comparisons to Canada, where housing affordability has been a major concern. Advocacy groups and lawmakers worry that AI-powered pricing tools could be making it harder for renters to find affordable housing.
The NDP first called for an investigation in September 2024, followed by a push from BC. NDP MP Bonita Zarrillo, who unsuccessfully tried to get a House of Commons committee to investigate the issue in October. Later that month, innovation minister François-Philippe Champagne asked the Competition Bureau to launch a probe, leading to the current investigation.
Zarrillo welcomed the confirmation, saying, “Finally, the renters in this country are going to get some transparency and shine a light on this rent price fixing.”
Read more: Is Canada's housing crisis creating a nation of renters?
Meanwhile, AI-driven rent pricing has become a flashpoint in the Liberal leadership race. Candidate Chrystia Freeland has vowed to ban AI’s use in rental pricing, calling it a tool for landlords to unfairly drive up costs.
“Big corporate landlords are using AI to analyze renters’ information to collude, set rates, and squeeze renters. My government will ban this practice outright,” Freeland said in a policy statement.
Zarrillo suggested Freeland’s stance may be aimed at her chief rival, Mark Carney, the former Bank of Canada governor and ex-chair of Brookfield Asset Management. Three Brookfield subsidiaries are listed as defendants in the US lawsuit.
“Now they’re in a Liberal leadership race and Chrystia Freeland realizes that Mark Carney’s weak on this side. He’s exposed on this rent price fixing, potentially,” Zarrillo said.
Carney, who resigned from Brookfield in January to pursue his leadership bid, has not responded to requests for comment. The Competition Bureau has not released details of its investigation, citing confidentiality rules.
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