The U.S. Department of Justice (DOJ) has filed a lawsuit against six of the country’s largest landlords, accusing them of being part of a rent price-fixing scheme that has hurt renters across the U.S. The lawsuit, which was filed on January 7, 2025, claims that these landlords used a property management software called RealPage to manipulate rental prices and limit competition.
Companies Involved in the Lawsuit
Among the companies named in the lawsuit are two Texas-based property management firms: Greystar and Camden, both of which have multiple properties in cities like Austin and Dallas-Fort Worth. The other landlords mentioned include Cushman & Wakefield, LivCor, Cortland, and Willow Bridge. Together, these companies manage a total of 1.3 million apartments across 43 states and Washington, D.C.
The DOJ’s complaint argues that these companies used the RealPage software, which uses algorithms to set rental prices. The software allegedly allowed them to share sensitive, non-public rental pricing information with one another, allowing them to avoid competition and keep rental prices high. This practice, according to the DOJ, made it harder for renters to find affordable housing.
How the Software Worked
RealPage’s software collects data from thousands of rental properties and uses algorithms to suggest rent prices. This system is designed to help landlords set competitive prices. However, the DOJ argues that instead of being a tool for healthy competition, RealPage’s software became a way for landlords to coordinate their prices. The software’s use led to higher rents for tenants, the DOJ claims.
The lawsuit includes details of how Greystar and Camden allegedly communicated with each other and shared pricing strategies. For example, Greystar reportedly provided Camden with information about upcoming rent prices and renewal rates. They also allegedly discussed how they would use the software to increase rents and limit tenant options. This, according to the DOJ, led to an unfair and anti-competitive rental market.
Impact on Renters
The DOJ argues that these actions have contributed to the rising cost of rent in major cities across the U.S., including Austin and Dallas-Fort Worth. These cities have seen rapid population growth, which has driven up demand for housing. However, the DOJ suggests that the pricing scheme led to higher rents, making it even harder for people to find affordable places to live.
According to the lawsuit, more than 30% of residential properties in some U.S. metro areas are using this type of pricing software. This includes the Austin-Round Rock and Dallas-Fort Worth-Arlington areas, where the DOJ claims a significant portion of the rental market is affected by this pricing scheme.
What the DOJ is Asking For
In its lawsuit, the DOJ is seeking to end the practices of price-fixing and anti-competitive behavior. They want to hold the companies accountable for using the RealPage software to coordinate their rental prices and limit competition. The DOJ is also pushing for changes that would make housing more affordable for renters across the country.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki. “Today’s action seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
Reactions from the Companies Involved
Greystar, one of the Texas-based companies named in the lawsuit, has denied any wrongdoing. In response to the lawsuit, Greystar issued a statement saying that it is disappointed to be included in the case. The company maintains that it has always conducted its business with integrity and that it will vigorously defend itself against the claims.
Conclusion
This lawsuit marks a significant moment in the ongoing debate over the rising cost of housing in the U.S. The DOJ’s action against RealPage and the landlords is an attempt to crack down on price-fixing practices that could harm renters. As the case moves forward, it could lead to changes in the way rental prices are set and may make housing more affordable for people across the country.
(Source : mysanantonio.com)
