RealPage algorithm accused of artificially increasing rents, stifling competition
RealPage algorithm accused of artificially increasing rents, stifling competition
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Occurred: October 2022
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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.
➕ January 2025. The US Justice Department sued six large US landlords for rental price-fixing using RealPage.
RealPage
RealPage, Inc. is an American property management software company, owned by the private equity firm Thoma Bravo, and known for its algorithmic rent setting, which is allegedly price fixing.
Source: Wikipedia 🔗
Operator: Greystar; FPI Management; Equity Residential, Lincoln Property Company; Mid-America Apartment Communities
Developer: RealPage
Country: USA
Sector: Real estate sales/management
Purpose: Calculate rent prices
Technology: Pricing algorithm
Issue: Accountability; Business model; Competition/price fixing; Transparency
Legal, regulatory 👩🏼⚖️
Legal, regulatory 👩🏼⚖️
USA v RealPage (2024)
District of Colombia v RealPage (2023) (pdf)
Elizabeth Warren DoJ letter (2023) (pdf)
Hausfeld legal complaint (2022) (pdf)
Investigations, assessments, audits 👁️
Investigations, assessments, audits 👁️
ProPublica (2022). Rent Going Up? One Company’s Algorithm Could Be Why
ProPublica (2022). Why Rent is So High
ProPublica (2022). Department of Justice Opens Investigation Into Real Estate Tech Company Accused of Collusion with Landlords
ProPublica (2022). Company That Makes Rent-Setting Software for Apartments Accused of Collusion, Lawsuit Says
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Type: Incident
Published: October 2022
Last updated: February 2024
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