The U.S. Department of Justice is suing several major landlords for allegedly colluding to keep rents high. The lawsuit accuses them of using an algorithm to set rents and sharing sensitive pricing information to avoid competition.
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The lawsuit named six landlords collectively managing 1.3 million rental units in 43 states and Washington, D.C. Among them are Greystar Real Estate Partners LLC, the Associated Press reported. However, the company has denied any wrongdoing and said they will be “vigorously defending” themselves in the lawsuit.
The DOJ claims the landlords also shared sensitive data, allegedly including rental renewal rates, pricing strategies, and using concessions like free rent—with competitors via emails, phone calls, and private groups. Their alleged practices permitted them to categorize rents artificially in order to avoid market competition that might make prices go down. The suit also listed RealPage, a software company accused of enabling landlords to use an algorithm to set rental prices.
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“Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country,”
One landlord has reportedly agreed to cooperate with prosecutors and proposed to limit their use of competitors’ data.
