DOJ Files Lawsuit Against Six Landlords Over Alleged Algorithmic Rent Pricing Practices
The landlords are said to have shared sensitive information regarding rental prices, occupancy rates, and pricing tactics.
On Tuesday, the Department of Justice (DOJ) announced its intention to sue six major landlords for their alleged anticompetitive activities in the housing rental sector, marking an expansion of the DOJ’s initial case that accused these landlords of engaging in algorithmic collusion.
The antitrust lawsuit, filed by the DOJ alongside a coalition of states in North Carolina in August 2024, alleges that RealPage, a property management software firm, facilitated collusion among landlords by allowing them to share pricing information via its software, which recommends rent prices.
The DOJ claims that the landlords swapped critically sensitive information regarding rents, occupancy rates, and pricing strategies through various means such as phone calls, emails, and user groups organized by RealPage.
Named as defendants in the revised complaint are the landlords—Cortland Management, Greystar Real Estate Partners, Blackstone’s LivCor, Camden Property Trust, Cushman’s Pinnacle Property Management Services, and Willow Bridge Property.
According to the DOJ, these landlords manage over 1.3 million rental units across 43 states and the District of Columbia.
“The action taken today against RealPage and six leading landlords aims to stop their practices of prioritizing profits over individuals and to make housing more affordable for millions across the country,” stated Acting Assistant Attorney General Doha Mekki of the DOJ’s Antitrust Division.
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The DOJ reported that Cortland, which oversees more than 80,000 rental units across 13 states, has agreed to cooperate with the department and will file a proposed settlement.
A spokesperson for Cortland stated in an email to The Epoch Times that the proposed settlement is set to be submitted to the court for approval.
“We believe that this outcome was achieved because Cortland has dedicated substantial time and resources to develop a proprietary revenue management software tool that does not depend on data from external, non-public sources,” the spokesperson said.
Greystar has denied the charges and declared its intention to “vigorously defend” itself against the DOJ lawsuit.
Camden has voiced its disagreement with the DOJ’s assertions and plans to seek dismissal of the lawsuit, arguing that these allegations arose from measures taken during the COVID-19 pandemic.
The remaining three landlords did not respond to requests for comments before publication.
Reuters contributed to this report.
