DOJ Sues RealPage Over Alleged Rent Price-Fixing Scheme That Impacts Millions of Renters

The U.S. Department of Justice (DOJ) recently filed a lawsuit against RealPage, a real estate software company, accusing it of enabling large-scale rent price-fixing across the United States. RealPage’s pricing algorithms, which are widely used by major landlords and property managers, allegedly facilitate illegal collusion by allowing landlords to share sensitive pricing data, leading to artificially inflated rent prices. This scheme reportedly impacts millions of renters, with several states, including California and Washington, joining the lawsuit.

The lawsuit alleges that RealPage’s algorithm encourages landlords to adjust rental prices based on competitor data rather than market demand. The DOJ claims that the software’s “auto-accept” feature enables landlords to automatically apply suggested rent prices, effectively sidestepping independent market competition. This practice has significantly raised rental costs in certain areas, with one study finding that nearly 70% of apartments in a Seattle neighborhood were managed by companies using RealPage’s software.

The Biden administration has prioritized tackling anti-competitive practices that increase housing costs, with Attorney General Merrick Garland emphasizing that technology-driven collusion remains illegal. RealPage denies any wrongdoing, arguing that landlords retain full discretion over pricing. However, consumer advocates claim that the software exacerbates the housing crisis by removing incentives for landlords to compete on pricing.

The DOJ’s case highlights broader issues in housing affordability, drawing attention to how algorithms are increasingly affecting rental markets. As the legal battle unfolds, it may shape future regulations on the use of such pricing technologies in the housing industry.