NMHC/NAA Viewpoint: The potential benefits of AI to rental housing providers and their residents alike are clear. Policymakers must understand the deep and negative impact premature over regulation could have in this space.
Like virtually every industry, rental housing providers use emerging technologies, like Artificial Intelligence (AI), to enhance business operations, improve housing affordability and benefit millions of Americans renters. Today, seamless connectivity has enabled AI and related technologies in rental housing and has led to significant gains in meeting resident expectations and demand through virtual touring, more transparent and timely resident screening and leasing, home automation, predictive maintenance and improved property level climate resilience to name just a few.
A snapshot of some of the ways AI and other technology are being utilized in the multifamily space:
- Housing Developers are using technology in critical ways to build and rehabilitate rental properties.
- Housing Operators are using AI platforms to overcome labor market challenges, provide positive rental payment reporting services, improve accuracy and reduce bias in resident screening, and combat the rise in fraud in the application and leasing process.
- Housing Technology Suppliers are driving improved operations through new technologies optimizing the renter experience, improving property sustainability and resilience, enhancing security for residents, and driving operational costs down through predictive maintenance and other risk management tools which can lower costs for renters.
- Housing Owners and Financiers are leveraging cost saving technology platforms to improve efficiencies, underwrite lending, identify investing opportunities to meet growing rental demand and work towards improving housing affordability.
AI, machine learning and other emerging technologies help cultivate a positive rental experience and reduced costs—for both housing providers and renters. Technology is here to stay, however, as with any emerging innovation, appropriate safeguards play a key role in ensuring continued positive outcomes for all impacted parties. As such, NMHC and NAA members have engaged in industry-driven standard setting over time and acknowledge the need for continual, internal review and oversight of AI models, processes, and outcomes to ensure that both business operations and resident impact is understood, and negative outcomes are prevented.
As technology becomes more integral to every facet of the real estate industry, rental housing providers continue to work to ensure that we uphold our strong commitment to Fair Housing, Fair Credit Reporting and other pillars of the housing and consumer policy landscape.
The current legal and regulatory landscape provides strong protection against risks posed by AI, machine learning and algorithmic decision making in housing. Further legislative and regulatory efforts should not stifle innovation or inhibit the growth of technologies that have significant pro-consumer and pro-housing benefits and should promote principles that prioritize data integrity, mitigate bias, and acknowledge the legitimate business purposes for technology.
