Landlords’ go-to tool to set rent prices to be gutted under RealPage settlement
In a significant development for the U.S. rental market, RealPage, a leading provider of property management software, has agreed to settle an antitrust lawsuit brought by the Department of Justice (DOJ). The lawsuit alleged that landlords utilized RealPage’s tools to coordinate strategies that artificially inflated rental prices across the country. This settlement comes at a time when many American renters have been grappling with soaring housing costs, particularly in the wake of the COVID-19 pandemic, which has exacerbated an already challenging affordability crisis.
The DOJ’s press release emphasized that the proposed settlement aims to restore competitive dynamics in rental markets, benefiting millions of renters nationwide. Over the past few years, rental prices have surged at rates that significantly outpace inflation. Recent data from the Bureau of Labor Statistics indicated that rents rose by 3.5% over the year ending in September, highlighting the ongoing affordability issues faced by many tenants. The DOJ’s investigation suggested that RealPage’s market dominance may have contributed to this trend, leading to fears of housing instability among renters. By addressing these antitrust concerns, the DOJ hopes to foster a more equitable rental market that prioritizes the needs of tenants.
This settlement represents a crucial step towards ensuring fair competition in the rental market, which has been under scrutiny for its lack of transparency and fairness. As landlords increasingly relied on technology to manage their properties, the potential for collusion and price-fixing became a pressing concern. The DOJ’s actions signal a renewed commitment to protecting consumers and promoting a healthier housing market, where renters can find affordable options without the fear of unjust price hikes. The outcome of this case could set a precedent for how rental markets operate in the future, potentially reshaping the landscape for both landlords and tenants alike.
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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