Justice Department Claims RealPage Manipulated Rents Nationwide
Justice Department's Allegations Against RealPage
The Justice Department has initiated a civil lawsuit against the real estate company RealPage, asserting that the company’s software unfairly inflates rent prices across the nation. According to the lawsuit, RealPage utilizes confidential landlord data to enhance its pricing algorithm, creating a system that undermines competition in the rental market.
Details of the Lawsuit
- RealPage's software allegedly uses non-public information from landlords.
- The algorithm is designed to maximize rental income, often at the expense of market fairness.
- Attorney General Merrick Garland criticized the tactics, stating that such schemes contribute to rising rents.
Potential Impact on the Rental Market
This lawsuit highlights significant concerns regarding corporate landlords who own large portfolios of rental units. The complaint underscores how market concentration exacerbates issues for tenants, with corporate landlords using sophisticated tools to coordinate rental pricing.
With RealPage managing over 3 million rental units, primarily concentrated in southern states, the Justice Department warns that these actions could lead to a breakdown of competitive practices that benefit consumers.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.