A new study by the nonprofit Greenlining Institute found significant impacts on how renters and homebuyers are impacted by automated decisions, from higher mortgage rates to rejection of rental app…
Among the many hurdles faced by Bay Area home buyers, communities of color often face an addition challenge: biased computer algorithms. A new study by the Greenlining Institute found significant impacts on how renters and homebuyers are impacted by automated decisions, from higher mortgage rates to rejection of rental applications. A new bill, AB 13, seeks transparency and review of algorithms leaned on for a broad-range of life changing decisions, from hiring and promotions to loan applications and hospital treatment. “Everywhere, they’re being used, and used in ways that can affect wealth,” said Vinhcent Le of the Greenlining Institute. A housing shortage in the Bay Area housing has helped drive up home prices and lift home values for property owners, while low and middle class workers see more of their wages consumed by rent. The competition and budget stress for Bay Area housing has been intense. At least 4 in 10 renter households in Santa Clara, San Mateo, Alameda and Contra Costa counties were considered rent burdened, paying more than 35 percent of their family incomes toward housing, according to a 2019 study by the Bay Area Council. Advocates say the potential burden of biased algorithms make housing searches more difficult for members of vulnerable communities.
