The Department of Justice has filed a lawsuit against six major landlords for allegedly colluding to raise rents using a pricing algorithm. This expands on a previous antitrust complaint against RealPage, a property management software company. The landlords collectively manage over 1.3 million apartments across multiple states.
Acting Assistant Attorney General Doha Mekki stated that the landlords shared sensitive information to keep rental prices high, prioritizing profits over affordability. ProPublica's investigation has led to legislative action and ongoing federal lawsuits against landlords using similar algorithms.
RealPage, the software company at the center of the controversy, faces accusations of coordinating rental prices through its algorithm, violating antitrust rules. The company denies the allegations and has made changes to its software.
Several landlords mentioned in the lawsuit, including Greystar and Camden Property Trust, have responded, with some denying the allegations. The lawsuit also involves other defendants like Cortland and Cushman & Wakefield. The lawsuit has gained traction with 10 participating states, including California.
Analyses suggest that algorithmic pricing can cost renters an additional $70 per month on average. The total added cost to renters in 2023 is estimated to be around $3.8 billion. The incoming administration's stance on the lawsuit remains uncertain.
Overall, this legal action sheds light on the potential manipulative practices in the housing market, impacting renters across the country. The outcome of the lawsuit could have significant implications for the industry.
https://classifiedsmarketing.com/department-of-justice-files-lawsuit-against-major-u-s-landlords-for-suspected-price-manipulation-propublica/?fsp_sid=1168
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