Summary
The U.S. Justice Department, joined by 10 states, has sued six major landlords and RealPage, a company behind a rent-setting algorithm, accusing them of colluding to keep rents high by sharing sensitive pricing data and avoiding competition.
The landlords, operating over 1.3 million units, allegedly used RealPage’s algorithm and coordination to align rents, exacerbating the housing crisis.
One landlord has agreed to cooperate with prosecutors.
Critics argue this scheme worsens affordability issues for renters, who already face record rent burdens amid a strained housing market.
That’s probably advantageous for these giant companies as they can shoulder the losses with the volume of rentals they control. Mom and pop landlords might be forced to sell these properties due to the vacancies which means these large companies can swoop in, gobble these properties up, and keep raising rents.