Why prohibit artificial intelligence in setting rents?

HB 215 is yet another in a long line of bad bills relating to housing policy in New Mexico’s 2025 legislative session. The bill demands property owners not use AI in collecting, analyzing, and training an algorithm/AI on historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of dwelling units from two or more rental property owners in order to recommend rent prices or lease renewal terms.

In other words, no using the best technology available to set rent prices and terms. So, instead this bill requires the use of hunches, dartboards, informal surveys, and less scientific approaches. Why? Who knows? It’s just another ridiculous way for politicians to intervene in the housing market without actually doing anything to increase the housing supply in New Mexico.

It would seem that explicitly prohibiting the use of the latest technology (AI) for something as basic as helping determine the price of rental tool for price discovery int the rental market might make entrepreneurs and businesses even less likely to move their AI-oriented businesses to New Mexico. Does New Mexico REALLY need to double down on anti-technology approaches to policymaking especially in the area of housing, which the state needs to build more of?

The bill is currently awaiting action on the House floor. It is rated “-4” in our Freedom Index.