Gov. Jared Polis vetoed a bill Thursday that aimed to ban the use of rent-setting algorithms in Colorado — saying the cost of rent is already too high while rejecting a measure its backers argued would lower it.
House Bill 1004, passed along party lines, targeted software like that made by RealPage. The bill’s sponsors argue that such technology can distort competition by enabling de facto collusion among large landlords.
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RealPage was accused by state and federal regulators of enabling landlords to coordinate rent hikes. A Biden-era White House study found algorithm-driven pricing could add as much as $136 to monthly rents in Denver.
Polis said in a veto letter that he supported the bill’s goal of curbing price collusion and called it “especially egregious” when large landlords use algorithms to exploit renters. He also appeared to acknowledge that enforcement of existing antitrust laws may be under-resourced, offering “to partner on improving authority and resources related to the successful enforcement of the Colorado Antitrust Act to better protect consumers.”
Still, he warned that banning rent-setting tools could have “unintended consequences,” like reducing access to rental-market data and driving housing providers out of Colorado.
“The cost of rent is already too high,” Polis said in the letter.
He added that current state and federal investigations should run their course — and that he may support a narrower bill next year. A similar bill failed in the 2024 legislative session.
"RealPage applauds Governor Polis for his courageous leadership in doing the right thing and vetoing HB25-1004," RealPage Senior Vice President of Communications and Creative Jennifer Bowcock told Bisnow in an emailed statement. "This is the right outcome for all of us who desire a healthy housing ecosystem that benefits Colorado renters and housing providers alike. We want to thank Governor Polis and the broad array of supporters of housing affordability who instead advocated for the responsible use of technology and tools like RealPage's algorithmic pricing software to find fair pricing, ultimately benefiting all Coloradans."
The veto marks a rare political move: a high-profile Democrat rejecting a bill framed as a popular pro-renter policy.
BG Law partner Jerrold Bregman told Bisnow in April that the bill was about more than market fairness.
“Politics can’t be ignored,” Bregman said. “I think there’s some political currency to be gained to be seen as attacking big business and trying to rein in predatory activity.”
Polis’s decision brings his veto total this session to 11, surpassing his previous record.
UPDATE, JUNE 2, 5:40 P.M. ET: This story has been updated with comment from RealPage.
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