For years, landlords have been accused of using price-fixing software to artificially inflate rental prices. These third-party platforms allegedly allow landlords to centralize pricing decisions amongst themselves, creating a massive network that enables them to raise rental prices while reducing competition.
In an effort to increase awareness of this issue and collect feedback from renters, the American Economic Liberties Project (Economic Liberties) has launched a new initiative called End Rental Price-Fixing.
“The cost of housing is a massive burden on the finances of millions of American families,” the group wrotein an emailed statement announcing the initiative. “That’s especially true for renters, who have seen their monthly payments skyrocket over the past several years. This isn’t only supply and demand at work. A key culprit in the surge in rents is also the growth of software-enabled collusion by companies like RealPage and Yardi.”
The initiative specifically lists algorithmic software platforms like Yardi’s Revenue IQ and RealPage’s YieldStar, which Economic Liberties alleges has played a role in double-digit rent increases in some metro areas.
In addition to providing a top-level view of the issue of algorithmic rent-fixing, the initiative advocates for government intervention at every level to ban the practice. End Rental Price-Fixing also highlights ongoing lawsuits and legislation, including San Francisco’s first-in-the-nation ban and actions by states like Arizona and Washington, D.C. It also provides news articles, legal complaints, and expert testimony to support its cause, making it one of the most comprehensive resources available for rental price-fixing.
Economic Liberties make a point in highlighting states that have either joined the Justice Department lawsuit against RealPage, or have filed their own state antitrust cases. As the End Rental Price-Fixing initiative continues to raise awareness, it will be interesting to see how the map of lawsuits and results evolves.
WBE is serving as co-lead counsel in a case in California alleging Yardi is engaged in the exact conduct Economic Liberties seeks to prevent. Click here to learn more about this case.
0 Comments