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Landlord Giant Pays $7M Over Rent-Fixing Algorithm
21 Nov
Summary
- Greystar Property Management agreed to a $7 million settlement over claims of an algorithmic pricing scheme.
- Nine states sued Greystar for allegedly participating in a scheme to artificially inflate rental prices.
- The settlement prohibits Greystar from using software that relies on competitor data to set rents.
Greystar Property Management, the nation's largest landlord, has agreed to a $7 million settlement resolving accusations of using an algorithmic pricing scheme. Nine states, including California and Massachusetts, sued Greystar, alleging it colluded with other property management companies through the RealPage service to artificially inflate rental prices. This settlement marks a significant step in addressing concerns about market manipulation in the rental housing sector.
The lawsuit alleged that Greystar and other landlords shared sensitive pricing data, enabling RealPage's algorithms to recommend uniform rent increases. This practice allegedly eliminated competition and forced renters to pay artificially high prices. California Attorney General Rob Bonta emphasized that colluding to drive up prices is illegal, regardless of the method used, and vowed to hold accountable those who fuel housing unaffordability.
As part of the resolution, Greystar has committed to discontinuing its use of software that relies on competitors' confidential data for setting rental rates. This move aims to restore competition and affordability for renters nationwide. The case is ongoing against other involved companies, with authorities determined to ensure families have a fair chance at securing affordable housing.
