Oregon bill aims to curb rent price hikes, prohibit AI price-fixing

PORTLAND, Ore. (KOIN) — Lawmakers in Salem are hearing testimony on a bill that would amend Oregon’s rent increase law once again. Originally passed in 2019, changes to lower the rent cap were greenlit in 2023. However, renters say loopholes are driving prices up, leaving tenants without a place to live.

“I had no idea it was going to be so much, it was quite shocking. I immediately knew that I wouldn’t be able to live there anymore,” said Judiaan Woo, one of the renters who joined the Community Alliance of Tenants advocating for the reforms proposed in Senate Bill 722.

The bill aims to reduce the number of buildings exempt from rent increase limitations and it would ban the use of AI price-fixing software.

Woo is a mother and business owner. She said that because her Tigard apartment complex was built recently, property management was able to bypass the state’s rent control law and raise her rent by nearly 15% in December. That’s an increase of roughly $7,000 for the year.

“I believe in building, and I believe in providing new housing opportunities, but there should be a middle ground where people have some protections and some regulation. I don’t feel like people should be able to just jack up the rent to anything they want,” said Woo, who was joined by several other tenants testifying in support of the bill at the Oregon State Capitol.

Advocates for investors and landlords also testified against the bill, arguing the change could deter much-needed development at a time when cities across the state are declaring housing emergencies.

“Developers must recoup their investments, and without a sufficient exemption period, they will be forced to have higher initial rents to recover costs more quickly,” said Multifamily NW Director of Public Affairs Zach Lindahl.

If passed, SB 722 would keep the current rent cap of 7% plus inflation or 10%. However, the bill would reduce the new build construction exemption from 15 years down to 7.

Those opposing SB 722 also argued the AI tools do not guarantee artificial rent inflation and that removing them would deter out-of-state investment and development.

“Our office responds to frantic calls from tenants every day at risk of eviction and displacement because of rent increases,” said Oregon Law Center Director of Legislative Advocacy Sybil Hebb.

Hebb said the state saw an increase of more than 2,000 eviction filings every month last year, with more than 80% due to rent unaffordability.

“By reducing the new exemption, we’ll cover an additional 40,000 units, which is approximately 80,000-100,000 Oregonians, meaning more families will have that greater stability, which is of such great importance right now in this housing crisis and this homelessness crisis,” Hebb said.