{"id":2330048,"date":"2024-08-23T13:45:01","date_gmt":"2024-08-23T17:45:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-sues-real-estate-company-alleging-it-colluded-to-drive-up-rent-prices-washington-examiner\/"},"modified":"2024-08-23T13:54:06","modified_gmt":"2024-08-23T17:54:06","slug":"doj-sues-real-estate-company-alleging-it-colluded-to-drive-up-rent-prices-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-sues-real-estate-company-alleging-it-colluded-to-drive-up-rent-prices-washington-examiner\/","title":{"rendered":"DOJ sues real estate company, alleging it colluded to drive up rent prices &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdoj-sues-real-estate-company-alleging-it-colluded-to-drive-up-rent-prices-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2330048&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Department\u200d of Justice (DOJ) filed a lawsuit \u200cagainst \u2062RealPage, a Texas-based software company, accusing it of violating\u2063 antitrust laws through\u2063 a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/buttigiegs-former-firm-shells-out-573-million-to-evade-lawsuits-over-role-in-opioid-crisis\/\" title=\"Buttigieg\u2019s Former Firm Shells Out 3 Million to Evade Lawsuits Over Role in Opioid Crisis\">price-fixing scheme<\/a> that involved disseminating private rental information among competing landlords. This \u2064practice allegedly replaced competition with\u200b coordination, leading to inflated rental\u200b prices across urban areas, thereby harming renters. Attorney \u2064General Merrick \u2063Garland stated that the lawsuit\u2063 was initiated after a two-year \u200cinvestigation and that eight states \u200cjoined the DOJ in the action. RealPage, which\u2062 claims to offer\u2063 pricing services for over 24\u200d million rental units\u200c globally, is accused of enabling landlords to\u200d avoid\u200b competition \u2064in\u2063 the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/single-family-rent-increases-drastically-as-americans-move-to-red-states\/\" title=\"Single-Family Rent Increases Drastically As Americans Move To Red States\">rental market<\/a>, potentially\u200c violating the Sherman Antitrust Act, designed to prevent monopolistic practices. The\u2062 issue of\u200b rapidly rising rent prices is particularly concerning for young voters, a demographic that\u200d predominantly\u2063 rents rather than \u2064buys \u2062homes.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">DOJ sues real estate company, alleging it colluded to drive up rent prices<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1621830\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>The <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/justice-department\" target=\"_blank\" rel=\"noopener\" title=\"Department of Justice\">Department of Justice<\/a> sued RealPage on Friday, <a href=\"https:\/\/www.justice.gov\/opa\/media\/1364976\/dl?inline\" target=\"_blank\" rel=\"noopener\" title=\"Department of Justice\">accusing<\/a> the company of violating antitrust laws by carrying out a price-fixing scheme that involved sharing private rent information among landlord competitors.<\/p>\n<div class=\"article-paywall\">\n<p>The DOJ said RealPage, a Texas-based software company widely used in the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/real-estate\/\" target=\"_blank\" rel=\"noopener\" title>real estate<\/a> industry, replaced &ldquo;competition with coordination&rdquo; in urban areas, leading to widespread artificial inflation of rent prices.<\/p>\n<p>RealPage &ldquo;substitutes unity for rivalry. It subverts competition and the competitive process. It does so openly and directly &mdash; and American renters are left paying the price,&rdquo; DOJ attorneys wrote in the lawsuit.<\/p>\n<p>Attorney General Merrick Garland said in a press conference announcing the lawsuit that the lawsuit was the result of a two-year investigation. Eight states, including California, Colorado, Connecticut, North Carolina, Minnesota, Oregon, and Tennessee, joined the DOJ in the suit.<\/p>\n<p>RealPage&rsquo;s website boasts that it provides pricing services internationally for more than 24 million rental units.<\/p>\n<p>&ldquo;This software is developed, marketed, and sold to enable landlords to sidestep vigorous competition in the rental market,&rdquo; Garland said, alleging that RealPage violated the Sherman Antitrust Act, legislation designed to combat business monopolies.<\/p>\n<p>Exorbitant rent prices are a top source of anxiety for young voters, and rent rates have an outsize impact on their demographic &mdash; one statistic <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/3003247\/soaring-rents-a-top-concern-for-younger-voters\/\" target=\"_blank\" rel=\"noopener\" title>found<\/a> that 84% of Generation Z members who live on their own rent instead of buy.<\/p>\n<p>RealPage provides its pricing services to a vast majority of companies that manage apartments, DOJ attorneys noted. RealPage describes its services, which are provided mainly through a program called YieldStar but also through other programs, as &ldquo;revenue management.&rdquo;<\/p>\n<p>In practice, companies that manage large <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/shapiro-debunking-rent-control\/\" title=\"SHAPIRO: Debunking Rent Control\">apartment buildings<\/a> in urban areas will set their rent rates using a RealPage product like YieldStar by sending information to YieldStar, which in turn will generate an algorithm of pricing information for the apartment management companies. The companies, which operate as landlords, then use that information to give prospective renters their rent rates or give renewal rent rates to current renters who are considering renewing their leases.<\/p>\n<p>Companies managing different apartment buildings are all, therefore, sharing &ldquo;competitively sensitive&rdquo; pricing data with one dominating company, RealPage, the DOJ alleged, saying RealPage, in turn, &ldquo;allows landlords to manipulate, distort, and subvert market forces.&rdquo;<\/p>\n<p>The lawsuit quoted landlords who had experiences with RealPage. One landlord said it &ldquo;can eliminate the guess game&rdquo; with pricing decisions.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong>&nbsp;<\/p>\n<p>&ldquo;I always liked this product because your algorithm uses proprietary data from other subscribers to suggest rents and term. That&rsquo;s classic price-fixing,&rdquo; another landlord said.<\/p>\n<p>RealPage&rsquo;s press office did not respond to a request for comment.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1621830\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1621830\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Justice (DOJ) filed a lawsuit against RealPage on Friday, claiming the company engaged in illegal price-fixing by sharing confidential rental information among competing landlords. According to the DOJ, RealPage, a Texas-based software firm prevalent in the real estate sector, replaced competition with coordinated efforts in urban markets, resulting in significant artificial rent increases. The lawsuit states that RealPage &#8220;substitutes unity for rivalry,&#8221; undermining competition and leaving American renters to bear the financial burden. Attorney General Merrick Garland announced that this legal action followed a two-year investigation and noted that eight states\u2014California, Colorado, Connecticut, North Carolina, Minnesota, Oregon, and Tennessee\u2014joined the DOJ&#8217;s case. RealPage claims to offer pricing services for over 24 million rental units globally. Garland accused the company of creating software designed to help landlords avoid intense competition within the rental market while violating the Sherman Antitrust Act aimed at preventing monopolies. Rising rent prices are particularly concerning for young voters; statistics show that 84% of Generation Z individuals living independently choose to rent rather than buy homes. The DOJ highlighted that most apartment management companies utilize RealPage\u2019s pricing services primarily through its YieldStar program along with other tools described as &#8220;revenue management.&#8221; In practice, property managers use YieldStar by inputting data which generates algorithm-driven pricing suggestions for their apartments. This process leads different property managers to share sensitive pricing information with RealPage\u2014a situation alleged by the DOJ as allowing landlords to manipulate market dynamics unfairly. Some landlords shared their experiences with RealPage&#8217;s system; one mentioned it removes uncertainty from pricing decisions while another pointed out how it uses proprietary data from other users for setting rents\u2014a clear indication of price-fixing behavior according to them. As of now, there has been no response from RealPage\u2019s press office regarding these allegations<\/p>\n","protected":false},"author":49,"featured_media":2330049,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/merrick-garland-doj-antisemitism.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[6926,7076,4585,27491,39096],"class_list":["post-2330048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-collusion","tag-doj","tag-lawsuit","tag-real-estate","tag-rent-prices"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/merrick-garland-doj-antisemitism.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2330048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2330048"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2330048\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2330049"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2330048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2330048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2330048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}