Multiple states have filed suit against RealPage, accusing the Richardson-based company of artificially inflating housing costs.<\/p>\n
RICHARDSON, Texas \u2014 Amidst an ongoing lawsuit, the Justice Department has now filed a settlement that would prohibit the Richardson-based company from using competitively sensitive information in its software to set rental prices.<\/p>\n
This also comes after more than a dozen states have filed a class-action lawsuit against RealPage<\/a>, accusing the company of trying to artificially inflate real estate prices across the country.<\/p>\n The Department of Justice’s Antitrust Division filed the proposed settlement this week in response to the U.S.’ claims against the company as part of its fight against anticompetitive practices in rental housing markets. In a statement, the DOJ said this settlement would help restore free market competition for millions of Americans in rental markets.<\/p>\n \u201cCompeting companies must make independent pricing decisions, and with the rise of algorithmic and artificial intelligence tools, we will remain at the forefront of vigorous antitrust enforcement,\u201d Assistant Attorney General Abigail Slater of the Justice Department\u2019s Antitrust Division said in a statement.<\/p>\n Should the court approve the settlement, the DOJ says it would require RealPage to cease using competitors’ nonpublic, sensitive information in its software to determine rental prices, as well as using ease data for training the software’s models and conducting market surveys to collect sensitive information, among other provisions.<\/p>\n RealPage would also be required to remove or redesign features limiting price reductions or aligned pricing between competing users, officials say.<\/p>\n Dallas hasn’t been spared from these rent hikes. A report released by the White House Council of Economic Advisors last year found that Dallas-area rents paid $132 more per month on average in 2023 if their landlords used RealPage’s software. More than half of DFW’s landlords use the software, the second-highest usage of it in the country.<\/p>\n The company offers software called YieldStar, which provides suggested rent prices for units using data analytics. A video touting the company’s services states apartments rents have recently shot up by as much as 14.5%.\u00a0<\/p>\n The Justice Department\u00a0filed a lawsuit against RealPage<\/a> and six major landlords at the start of the year, accusing them of not just coordinating to keep rents high, but of privately sharing sensitive information with competitors to increase profits.<\/p>\n