RealPage algorithm accused of artificially increasing rents, stifling competition

An algorithm called YieldStar is responsible for artificially driving up prices and stifling competition across the US, according to a media investigation.

An investigation by ProPublica found that approximately 90 percent of the 31,000+ property managers/landlords who use YieldStar obey its price increase suggestions. 

Many landlords do not negotiate with their tenants - something discouraged by YieldStar owner RealPage - and thereby sacrifice their relationships and trust with them.

ProPublica also alleged that RealPage's software may be facilitating collusion amongst its clients, particularly in locations where many of them use YieldStar to set rent prices.

➕ October 2022. Nine renters filed (pdf) a lawsuit in San Diego accusing RealPage of forming 'a cartel to artificially inflate the price of and artificially decrease the supply and output of multifamily residential real estate leases from competitive levels.'

➕ November 2022. Media reports indicated the DoJ opened an investigation into RealPage. Three senators and seventeen members of congress (pdf) requested the US Department of Justice (DoJ) to investigate RealPage.

➕ October 2023. The District of Colombia sued (pdf) RealPage and 14 landlords for illegally colluding 'to artificially raise rents by participating in a centralized, anticompetitive scheme, causing District residents to pay millions of dollars above fair market prices.'

➕ August 2024. The US Justice Department sued RealPage for allegedly violating antitrust law by helping property managers collude to drive up rental prices on millions of units across the US.

Legal, regulatory 👩🏼‍⚖️

• USA v RealPage (2024)