Key Takeaways

1. The RealPage lawsuit is a major civil antitrust case brought by the U.S. Department of Justice and several states, alleging that RealPage and major landlords used algorithmic pricing software to coordinate rental prices, harming millions of renters.
2. The case centers on claims of illegal information sharing and price-fixing in the rental housing market, with accusations that RealPage’s software enabled landlords to set rents in lockstep, violating federal and state laws.
3. The lawsuit is ongoing and its outcome could reshape how technology and data are used in the rental market, with significant implications for landlords, renters, and the future of algorithmic pricing.

Introduction

The RealPage lawsuit has emerged as one of the most significant legal challenges in the U.S. rental housing market. At its core, the case alleges that RealPage Inc., a provider of property management and pricing software, and several large landlords engaged in anticompetitive practices. The U.S. Department of Justice (DOJ), joined by Attorneys General from multiple states, claims that RealPage’s algorithmic pricing tools enabled landlords to share sensitive, nonpublic data and coordinate rental prices, resulting in higher costs for millions of renters.

This guide provides a comprehensive overview of the RealPage lawsuit, including the legal arguments, parties involved, and potential implications for the housing industry. All information is based on publicly available sources and the current status of the litigation as of June 2024.

Background of the RealPage Lawsuit

What is RealPage?

RealPage Inc. is a Texas-based company that offers software solutions to property managers and landlords. One of its most prominent products is a revenue management tool that uses algorithms and data analytics to help landlords set rental prices. RealPage’s software is widely used in the multifamily housing sector, managing pricing for millions of rental units across the United States.

The Allegations

The DOJ and several state Attorneys General allege that RealPage’s pricing software facilitated an unlawful information-sharing scheme among competing landlords. According to the complaint, RealPage collected and shared nonpublic, competitively sensitive information from landlords who used its software. This allegedly allowed landlords to set rental prices in coordination with each other, rather than competing independently, leading to artificially inflated rents (DOJ Press Release).

The lawsuit claims that this conduct violates both federal antitrust laws (notably Sections 1 and 2 of the Sherman Act) and state consumer protection statutes, such as California’s Unfair Competition Law.

States Involved

The lawsuit is a joint effort involving the DOJ and the Attorneys General of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington. Each state has brought claims under its own laws in addition to supporting the federal antitrust case.

Legal Claims and Arguments

Federal Antitrust Violations

The DOJ’s complaint asserts that RealPage and its landlord clients engaged in a conspiracy to fix prices in violation of the Sherman Act. The government alleges that RealPage’s software enabled landlords to:

• Share nonpublic, sensitive data about rents and occupancy.
• Use this data to set prices in a coordinated manner.
• Suppress competition, resulting in higher rents for tenants.

The DOJ amended its complaint to include six major landlords—Camden, Cushman & Wakefield/Pinnacle, LivCor, Willow Bridge, and Greystar—who collectively operate over 1.3 million rental units in 43 states (DOJ Amended Complaint).

State Law Claims

States have brought additional claims under their own consumer protection and antitrust laws. For example, the Washington Attorney General alleges that RealPage and participating landlords violated the state’s Consumer Protection Act by conspiring to fix rental prices (Washington AG News Release).

Collusion-by-Algorithm

A central issue in the case is the concept of “collusion-by-algorithm.” The government argues that RealPage’s software enabled landlords to coordinate pricing decisions indirectly, even if they did not communicate directly with each other. This raises novel legal questions about how antitrust laws apply to algorithmic and data-driven business practices (Freshfields Analysis).

Timeline and Procedural Status

Filing and Amendments

The initial lawsuit was filed in August 2024. Since then, the DOJ has amended its complaint to add additional defendants and factual allegations. The case is proceeding in federal court, with parallel actions in several states.

DOJ Criminal Investigation

The DOJ previously conducted a criminal investigation into pricing practices in the multifamily rental housing industry. In 2024, the DOJ announced that it had terminated its criminal probe, but the civil antitrust lawsuit remains active (RealPage Statement).

Ongoing Litigation

The litigation is ongoing, with motions, discovery, and potential trial proceedings expected to continue for months or years. The outcome remains uncertain, and the allegations have not yet been proven in court.

Parties’ Responses

RealPage’s Defense

RealPage has denied the allegations and is actively defending its software and business practices. The company argues that its pricing tools promote efficiency and transparency, and that landlords remain free to set their own rents. RealPage has also taken legal action against the city of Berkeley, challenging a local law regulating AI rent pricing (Reuters Coverage).

Landlords’ Positions

The major landlords named in the lawsuit have also denied wrongdoing. They contend that they use RealPage’s software as one of many tools to inform pricing decisions and that there is no unlawful agreement to fix prices.

Implications for the Rental Housing Market

Impact on Renters

If the allegations are proven, the lawsuit suggests that millions of renters may have paid higher rents due to coordinated pricing. The case has drawn attention from tenant advocates and policymakers concerned about housing affordability.

Impact on Landlords and Property Managers

Landlords and property managers are watching the case closely. The outcome could affect how they use technology and data analytics in setting rents. If the court finds that algorithmic pricing tools can facilitate illegal collusion, companies may need to change their practices to avoid antitrust liability.

Regulatory and Policy Considerations

The RealPage lawsuit is part of a broader trend of increased scrutiny on the use of algorithms and data sharing in markets. Regulators are considering whether existing antitrust laws are sufficient to address new forms of coordination enabled by technology.

Future Developments

The RealPage lawsuit is still in its early stages. As the case progresses, courts will address complex questions about the intersection of technology, competition, and consumer protection. The outcome could set important precedents for how antitrust laws apply to algorithmic pricing and data sharing in other industries.

More states may join the litigation, and additional regulatory actions are possible. The case is being closely monitored by legal experts, industry participants, and policymakers.

Official Resources and Further Reading

• DOJ Press Release: Justice Department Sues RealPage for Algorithmic Pricing Scheme
• Washington Attorney General News Release
• DOJ Amended Complaint
• RealPage Statement on DOJ Investigation
• Freshfields: DOJ Sues RealPage – Next Step in Antitrust Enforcement Against Pricing Algorithms

Disclaimer

This guide provides a general overview of the RealPage lawsuit based on publicly available information as of June 2024. The case is ongoing, and all allegations are unproven at this stage. Legal outcomes may change as the litigation progresses. For specific legal advice or the latest updates, consult an attorney or official court documents.