Think the rent is too high? The feds claim there’s a reason for that.
The U.S. Department of Justice has filed a lawsuit against RealPage, a property management software firm, claiming it helps landlords illegally collude on setting rents.
The antitrust lawsuit claims the company has engaged in a price-fixing scheme by allowing competing landlords to view rent data. Further, the suit claims the software’s algorithm looks at competing rents to suggest what a landlord should charge.
U.S. Attorney General Merrick Garland says Americans shouldn’t have to pay more in rent because a company has helped landlords break the law.
"We allege that RealPage's pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents,” Garland said.
“Using software as the sharing mechanism does not immunize this scheme from Sherman Act liability, and the Justice Department will continue to aggressively enforce the antitrust laws and protect the American people from those who violate them."
Some states join in
Several states – California, Colorado, Connecticut, Minnesota, North Carolina, Oregon, Tennessee and Washington – joined the federal government as parties to the lawsuit.
The cost of rent has been one of the biggest drivers of inflation as other elements of the cost of living have moderated in recent in months. In the July Consumer Price Index (CPI), “rent of primary residence” costs rose 0.5% from June to July and is up 5.1% over the last 12 months.
The Bureau of Labor Statistics reported that The index for shelter rose 0.4% in July, accounting for nearly 90% of the monthly increase in the CPI.
