US govt files antitrust lawsuit against RealPage for rent-fixing conspiracy

In a bold move against rising rental prices, the United States government has filed an antitrust lawsuit against RealPage, a prominent real estate software company, accusing it of facilitating collusion among landlords to artificially inflate rents nationwide.

The lawsuit, initiated by the Department of Justice in the Middle District of North Carolina, has garnered support from several states, including North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington.

The allegations center around claims that RealPage’s software has been instrumental in a price-fixing conspiracy that has led to unprecedented rent increases affecting millions of Americans.

According to a report by the New York Times, the software in question allowed landlords to coordinate and raise rents beyond typical market forces.

“This lawsuit marks a landmark case as it is the first significant civil antitrust action where the role of an algorithm in pricing manipulation is central,” stated Justice Department officials. Attorney General Merrick Garland underscored the seriousness of the situation, asserting, “Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law.”

The Times reports that RealPage’s software, YieldStar, provided subscribed landlords with access to sensitive real estate data, including rents and occupancy rates. This information enabled the algorithm to generate recommendations on how much landlords should charge for rent, a practice that has now caught the attention of federal authorities.

In response to the lawsuit, RealPage spokeswoman Jennifer Bowcock defended the company, asserting that their revenue management software was “purposely built to be legally compliant.” As the legal battle unfolds, the implications could reshape the future of rental pricing and the role of technology in real estate markets across the nation.

Image source: Reuters