Justice Department Files Lawsuit Against RealPage for Allegedly Assisting Landlords in Colluding to Raise Rent Prices

RealPage, a developer of software for managing properties, was brought to court on Friday by the Department of Justice along with eight state attorneys general. They allege the company facilitated collusion among apartment and property managers nationwide, leading to artificially inflated rental prices.

Based in Richardson, Texas, RealPage is alleged to have colluded with competing landlords, pooling information about their rental rates and leasing conditions to refine the algorithms that generate RealPage’s pricing recommendations. This, according to authorities, discouraged competitive pricing and market practices among landlords relying on RealPage for pricing guidance.

This marks the Department of Justice’s inaugural lawsuit focusing on algorithmic collusion at a time when rental costs in the United States have soared, with an increase of 33% since March 2020, as reported by Zillow.

Acquired by the investment firm Thoma Bravo in 2021 for $10.2 billion, RealPage holds a dominant 80% share in the U.S. market of revenue management software for traditional apartment rentals, the lawsuit claims. The company has denied any misconduct.