NDP Calls for Investigation into Possible Rent-Fixing by Large Property Companies
The NDP is calling for an investigation by the Competition Bureau into whether Canadian corporate landlords are utilizing the same AI software that led to an antitrust lawsuit in the United States.
Last month, the U.S. Justice Department filed a lawsuit against RealPage Inc., a real estate software company, alleging an illegal scheme that enables landlords to collude in raising rental prices.
The lawsuit, filed with attorneys general from states like North Carolina and California, claims that the company is violating antitrust laws through its algorithm, YieldStar, which landlords use to determine rental prices for millions of apartments nationwide.
MPs Alexandre Boulerice and Brian Masse from the NDP sent a letter to commissioner Matthew Boswell urging the bureau to investigate whether Canadian landlords have also used YieldStar.
The letter, dated Sept. 10, states, “Canadians deserve answers on how algorithmic pricing tools are contributing to rent hikes and the extent to which this practice is prevalent in the Canadian rental market.”
In Canada, rents have surged in recent years, raising concerns about affordability in the country.
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According to a report from Rentals.ca and Urbanation, average asking rents rose 3.3% year-over-year in August, reaching $2,187—the slowest annual increase in nearly three years.
