RealPage Faces DOJ Lawsuit Over Allegations of Rental Price Manipulation

Friday, 23 August 2024, 15:00

RealPage's pricing algorithm is at the center of a new DOJ lawsuit, asserting the company orchestrates housing price manipulation. This unprecedented legal action could reshape the landscape of real estate.
WIRED
RealPage Faces DOJ Lawsuit Over Allegations of Rental Price Manipulation

RealPage's Algorithms Allegedly Rig the Rental Market

If you’ve rented an apartment in the US in the last several years, you may have felt that the pricing system was unfair. The US Department of Justice (DOJ) has initiated a civil lawsuit claiming that RealPage's algorithm plays a significant role in systematically coordinating rental prices, thereby violating longstanding laws. The company’s software allegedly enables landlords to submit rental rate data that the algorithm uses to suggest prices, which hinders true competition.

DOJ Claims Against RealPage

  • The lawsuit asserts that RealPage's systems manage pricing for around three million housing units nationwide.
  • RealPage allegedly controls 80% of the revenue management software market for landlords.
  • Officials indicate this is the first civil action against a company for algorithmic pricing violations.

The Wider Implications

The DOJ's case, now supported by eight state attorneys general, represents a major escalation in regulating business practices within the real estate sector. As market pressures mount, and with increasing scrutiny on algorithm-driven businesses, this lawsuit may prompt significant changes in how housing prices are set across the country.


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.


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