Written by Christopher Gomes
The U.S. Department of Justice (DOJ) recently filed a landmark lawsuit against six of the country’s largest landlords, alleging that their use of algorithmic pricing software and information sharing practices have significantly contributed to the housing crisis. The landlords named in the suit—Greystar Real Estate Partners LLC, Blackstone’s LivCor LLC, Camden Property Trust, Cushman & Wakefield Inc, Pinnacle Property Management Services LLC, Willow Bridge Property Company LLC, and Cortland Management LLC—collectively manage over 1.3 million rental units across 43 states and the District of Columbia. The case has the potential to reshape how rents are set and regulated, with significant implications for renters nationwide.
Understanding the Lawsuit
The DOJ, joined by ten states, alleges that these landlords leveraged RealPage’s algorithmic pricing software to artificially inflate rents and avoid competition. According to the lawsuit, the landlords used the software to:
- Share sensitive market data, including renewal rates, occupancy rates, pricing strategies, and concessions, with competitors.
- Participate in RealPage’s user groups to discuss how to tweak the software’s pricing algorithms.
- Align rental pricing by accepting algorithmic recommendations that suppressed competition.
These actions, the DOJ argues, prioritized profits over people, creating financial strain for millions of renters. Renters across the U.S. are already grappling with rising housing costs, with many spending more than 30% of their income on rent and utilities, a level widely considered unsustainable.
The Impact on Renters
The practices alleged in the lawsuit are not just numbers on a balance sheet; they have real consequences for families and individuals. By artificially inflating rents, these landlords made it harder for tenants to afford basic necessities like food, healthcare, and education. High rents also perpetuate housing instability, pushing more people toward the brink of eviction and homelessness.
The use of RealPage’s software, combined with the sharing of sensitive data among competitors, essentially created a system where landlords could increase prices without fear of losing tenants to lower-priced competitors. The lawsuit highlights how these practices have eroded the fairness and competition that are supposed to underpin housing markets.
Why This Matters
Housing is a fundamental human right, yet practices like those outlined in the DOJ lawsuit place it out of reach for millions of Americans. The landlords’ alleged actions reflect a broader issue: the commodification of housing, where homes are treated as financial assets rather than places for people to live. This case has drawn national attention because it underscores the urgent need for transparency, accountability, and stronger protections for renters.
What’s Next?
The outcome of this lawsuit could be a turning point in the fight for housing justice. By holding these landlords accountable, the DOJ and the coalition of states aim to set a precedent for how rents are determined and regulated. A favorable outcome for the plaintiffs could lead to:
- Increased regulation of algorithmic pricing software in the housing market.
- Greater transparency in how rents are set.
- Stronger legal protections for renters.
These changes would not only address the immediate harms caused by the alleged practices but also lay the groundwork for a more equitable housing system.
One of the defendants, a landlord that manages over 80,000 rental units in 13 states, has entered a settlement agreement to end the use of rental pricing algorithms and sensitive data to set rents. A proposed consent decree memorializing the terms of the settlement is now before the United States District Court for the Middle District of North Carolina.
The Waterfront Project’s Perspective
At The Waterfront Project, we see firsthand how rising rents and housing instability impact our clients. As a legal center dedicated to fighting for tenants’ rights and preventing homelessness, we applaud the DOJ’s efforts to address these systemic issues. This lawsuit aligns with our belief that housing should be a human right, not a commodity. We will continue to advocate for policies and practices that put people before profits and ensure that everyone has access to safe, stable, and affordable housing.
Conclusion
The DOJ’s lawsuit against these six major landlords is more than a legal battle; it’s a fight for fairness and justice in the housing market. While the outcome remains uncertain, the case sends a clear message: exploitative practices that exacerbate the housing crisis will not go unchecked. As advocates for housing justice, we remain committed to supporting renters, raising awareness, and pushing for systemic change. Together, we can build a future where housing is not a privilege but a right for all.
Join Us in the Fight for Housing Justice
At The Waterfront Project, we are on the frontlines of the battle for housing equity. Your support helps us provide free legal services, housing counseling, and advocacy to those most affected by rising rents and housing instability. Join us in making a difference.
Donate today to support our mission and help us continue to fight for a world where housing is a human right. Together, we can make an impact.