RealPage agrees to change algorithm so landlords can’t collude on price hikes

In a significant development, RealPage has agreed to a settlement in an antitrust lawsuit brought forth by the Department of Justice (DOJ). The lawsuit accused the company of enabling landlords to collaborate on artificially increasing rental prices across the United States. The DOJ highlighted that this resolution aims to restore fair market competition within the rental market, benefiting millions of American renters. Since the onset of the pandemic, rental prices have surged beyond inflation rates, prompting suspicion that RealPage was a key player in a market landscape that consistently disadvantaged renters. Recent data from the Bureau of Labor Statistics revealed that rents have continued to climb by 3.5 percent in the past year, exacerbating the affordability crisis and leaving many renters anxious about housing stability. The DOJ's complaint filed in August alleged that RealPage routinely gathered sensitive pricing information from landlords, which facilitated the identification of pricing strategies that would maximize rental increases. According to the DOJ, this practice enabled landlords to discern when they could implement a $50 increase instead of a mere $10 or to eliminate incentives aimed at attracting or retaining tenants, such as waiving fees or offering a free month of rent. The DOJ's statement emphasized that RealPage's actions undermined the principles of competition, resulting in higher rental costs and fewer concessions for renters. As part of the settlement, RealPage did not admit to any wrongdoing and will not face monetary penalties. The Texas-based company asserted in court documents that its software is designed to suggest competitive market prices and that it did not inhibit competition from other revenue management software providers.