The U.S. Department of Justice (DOJ) and state attorneys general filed an antitrust lawsuit against RealPage Inc. and six large landlords, accusing them of using algorithmic pricing software to collude and inflate rents, harming millions of renters nationwide.
The U.S. Department of Justice (DOJ), joined by ten state attorneys general, has filed an amended antitrust lawsuit against RealPage Inc. and six large landlords, alleging they colluded to inflate rents using algorithmic pricing software, harming millions of renters nationwide. The lawsuit has significant implications for renters in the Greater Houston area, where many of the defendant landlords operate properties.
The complaint, filed in the Middle District of North Carolina, accuses RealPage and the landlords of using its revenue management software to coordinate rental prices, stifling competition, and driving up costs for renters. The defendants include major property management firms such as Greystar Real Estate Partners LLC, Camden Property Trust, LivCor LLC, Cushman & Wakefield Inc., Pinnacle Property Management Services LLC, and Willow Bridge Property Company LLC.The lawsuit alleges that RealPage’s software, including YieldStar and AIRM, collects non-public, competitively sensitive rental data from landlords, such as lease terms, rents, and occupancy rates. This data is used to make pricing recommendations that align rents across competing properties, reducing competitive pressure to lower prices or offer concessions. 'These defendants are alleged to have conspired to drive rents up for their own benefit, harming millions of American renters,' said Assistant Attorney General Jonathan Kanter.The DOJ claims that this practice allowed landlords to artificially inflate rents, including in markets like Houston, where many properties managed by the defendants are located.Cortland Management LLC, initially a defendant, has agreed to settle with the DOJ. The proposed settlement requires Cortland to discontinue its use of RealPage’s pricing software, cooperate with investigators, and implement reforms to prevent future collusion
ANTITRUST REALPAGE RENT INFLATION HOUSING MARKET ALGORITHMIC PRICING
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