Introduction
The Justice Department [2] [5], in collaboration with Massachusetts Attorney General Andrea Joy Campbell and attorneys general from Illinois and other states, has intensified its antitrust lawsuit against RealPage and several major landlords [2] [5]. The lawsuit accuses these entities of engaging in an anticompetitive scheme to manipulate rental prices across the United States.
Description
The Justice Department [2] [5], alongside Massachusetts Attorney General Andrea Joy Campbell and the attorneys general of Illinois and several other states, has expanded its antitrust lawsuit against RealPage and six major landlords: Greystar Real Estate Partners LLC, Blackstone’s LivCor LLC [2] [3] [4], Camden Property Trust [1] [3] [4], Cushman & Wakefield Inc. [1] [3] [4], Willow Bridge Property Company LLC [1] [4], Pinnacle Property Management Services [3], and Cortland Management [1] [3] [4] [5]. Initially filed in August 2023, the amended complaint alleges that these entities engaged in an anticompetitive scheme to fix rents for over 1.3 million rental units across 43 states and Washington, DC, utilizing RealPage’s algorithmic rent-setting tool to coordinate pricing strategies illegally.
The complaint details interactions among the landlords dating back to 2018 [4], including direct communications about rents and occupancy, discussions on how to respond to market challenges during the pandemic [4], and strategies for adjusting rents [4]. It accuses the defendants of violating the Sherman Act and Massachusetts consumer protection laws by unlawfully sharing nonpublic, competitively sensitive information and engaging in unfair competition [2]. The Justice Department is seeking to eliminate these illegal practices, restore competition in the rental market [2], and impose civil penalties of up to $5,000 for each violation [2].
In a related matter, a proposed consent decree has been filed against Cortland Management [5], which oversees more than 80,000 rental units in 13 states [5]. This decree requires Cortland to cooperate with the Justice Department’s investigation [5], cease using competitors’ sensitive data for pricing [2] [5], and refrain from employing the same algorithms as its competitors without oversight from a court-appointed monitor [5]. The proposed decree will be published in the Federal Register [5], allowing for a 60-day comment period before the US District Court for the Middle District of North Carolina can finalize the judgment [5], contingent on public interest considerations [5].
RealPage has denied the allegations and sought to have the lawsuit dismissed [4], asserting that the lawsuit will not enhance housing affordability and could hinder innovation in the sector [4]. A recent study indicated that rent-setting algorithms [4], including RealPage’s [4], contributed approximately $3.8 billion to tenants’ costs in 2023 [4], with the White House Council of Economic Advisers criticizing the tool as harmful to tenants [4]. Despite the allegations [4], a criminal investigation into these practices was reportedly closed without charges against RealPage [4]. Greystar and Cushman & Wakefield have expressed disappointment at being named in the lawsuit and have committed to defending themselves vigorously [4].
Conclusion
The expanded lawsuit against RealPage and major landlords highlights significant concerns about anticompetitive practices in the rental market. The outcome of this legal action could have far-reaching implications for rental pricing strategies and the use of algorithmic tools in the housing sector. The case underscores the ongoing tension between innovation and regulation, with potential impacts on housing affordability and market competition.
References
[1] https://www.washingtoninformer.com/justice-department-sues-realpage-landlords/
[2] https://www.mass.gov/news/ag-campbell-joins-justice-department-in-suing-realpage-large-landlords-for-anticompetitive-algorithmic-pricing-scheme-that-harms-renters
[3] https://www.wsmv.com/2025/01/07/justice-department-includes-six-rental-companies-lawsuit-against-realpage/
[4] https://www.bisnow.com/national/news/multifamily/doj-adds-6-landlords-to-realpage-antitrust-suit-127428
[5] https://www.justice.gov/opa/pr/justice-department-sues-six-large-landlords-algorithmic-pricing-scheme-harms-millions
