Landlords’ go-to tool to set rent prices to be gutted under RealPage settlement
In a significant move to address rising rental prices and restore competition in the housing market, RealPage has agreed to settle an antitrust lawsuit filed by the Department of Justice (DOJ). The lawsuit accused RealPage of facilitating collusion among landlords, who allegedly used the company’s software tools to coordinate efforts to artificially inflate rental prices across the United States. This settlement comes amid growing concerns about the affordability crisis facing renters, particularly in the wake of the COVID-19 pandemic, which has seen rental prices soar beyond inflation rates.
The DOJ’s press release emphasized that the proposed settlement aims to “help restore free market competition in rental markets for millions of American renters.” This is particularly crucial as recent data from the Bureau of Labor Statistics indicated that rents increased by 3.5 percent over the last year, despite a broader economic landscape grappling with inflation. The situation has left many renters anxious about their housing stability, as the cost of living continues to rise. The DOJ’s intervention signals a commitment to ensuring that market dynamics favor consumers rather than corporations, particularly in an era where housing affordability has become a pressing national issue.
RealPage’s software has been widely adopted by landlords and property management companies, giving them access to data and analytics that could potentially lead to coordinated pricing strategies. This has raised alarms about the potential for anti-competitive practices that undermine the principles of a free market. The settlement represents a pivotal moment in the ongoing struggle for housing equity, as it seeks to dismantle the mechanisms that have allowed landlords to raise rents without regard for the financial strain on tenants. As the rental market continues to evolve, the implications of this settlement will be closely monitored by both industry stakeholders and advocates for affordable housing.
RealPage has agreed to settle an antitrust lawsuit raised by the Department of Justice, alleging that landlords used its tools to coordinate efforts to artificially raise rental prices across the US.
In a
press release
, the DOJ promised the proposed settlement “would help restore free market competition in rental markets for millions of American renters.”
For years since the pandemic started, rental prices outpaced inflation, and the DOJ suspected that RealPage was the dominant force driving a market that never favored renters. Recent Bureau of Labor Statistics
data
covering a 12-month period ending this September showed rents are still rising by 3.5 percent amid an affordability crisis, leaving some US renters in fear of housing instability.
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