Landlords’ go-to tool to set rent prices to be gutted under RealPage settlement
In a significant development for the rental market, RealPage has reached a settlement in an antitrust lawsuit initiated by the Department of Justice (DOJ). The lawsuit accused the company of enabling landlords to collaborate in ways that artificially inflated rental prices across the United States. This case highlights ongoing concerns about market practices that disadvantage 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 settlement aims to restore competitive practices in rental markets, benefiting millions of American renters who have been grappling with escalating housing costs.
The settlement comes at a critical time when the rental market is still experiencing significant price increases. Recent data from the Bureau of Labor Statistics indicates that rents have risen by 3.5% over the past year, exacerbating an affordability crisis that has left many renters anxious about their housing stability. The DOJ’s investigation suggested that RealPage’s tools were instrumental in facilitating coordination among landlords, leading to a less competitive environment that favored price hikes rather than fair market rates. By addressing these practices, the settlement is expected to foster a more equitable landscape for renters, allowing for greater access to affordable housing options and potentially stabilizing rental prices in the long term. As the settlement unfolds, it remains to be seen how it will impact the broader rental market and the lives of those who rely on it.
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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