More than half of California renters are rent-burdened, meaning more than 30% of their incomes go toward rent. To afford a 2-bedroom apartment in California, you would need to make an average hourly wage of $47.38.

What’s going on? 

The housing crisis isn’t new. What is new, however, is the way landlords are using AI to inflate rents above and beyond what is fair. These AI-backed rent-setting algorithms turn competitors into collaborators; if enough landlords agree to set rental prices above what the market demands, California renters have little choice but to pay it. 

In fact, President Biden’s Council of Economic Advisors (CEA) found that, on average, this tech effectively costs renters $3.8 billion annually, at least $70 more a month on average. This same research shows that a $100 increase in median rent is associated with a 9% increase in homelessness. 

Jesus Figueroa Cacho is one of the people represented by that 9% figure, which is why she went to the California Senate Judiciary Committee on April 22 to testify in favor of the End AI Rent Hikes Act (SB 52). This is what she had to say:

Jesus Figueroa Cacho’s Testimony

Good afternoon. My name is Jesus Figueroa Cacho. I am a nursing care professional and an active member of both my union, SEIU 2015, and the community group ACCE.

I live here in Sacramento. 

Today, I testify before you, homeless, not because I didn’t work hard, but because our housing system failed me.

For seven years, I rented a single-family home from a corporate landlord who increased my rent by over $100 every year. 

When I was severely injured on the job, reducing my work hours, I had no choice but to spend my retirement to pay rent.

My entire retirement is now gone to pay my corporate landlord. 

Despite this sacrifice, with every year’s rent increase, it became harder and harder for me to keep up.  My landlord immediately began eviction proceedings. 

I became homeless. 

Corporate landlords like my landlord, who evicted me, have been using AI technology to develop a rent pricing algorithm that allows them to hike the rents well above the market. When corporations that are supposed to compete are allowed to collaborate with one another to manipulate the market and maximize profits,  working families lose. 

Homelessness is made worse by AI-inflated rents, and I stand here today as a living, breathing example. 

While families like mine struggle, corporate landlords enjoy record profits, buying up housing across California and hiking up the rents.

I share my story because I want you to understand the real human impact of these policies. 

This is why we must end the market manipulation and pass SB 52.

Now it’s your turn

Do you relate to Jesus’ story? Has your rent been raised by an algorithm? By sharing your experience, you help lawmakers and the public understand what changes need to happen to ensure a better tech economy for everyone.