In August 2024, the U.S. Department of Justice (DOJ) filed a landmark antitrust lawsuit against RealPage, a leading property management software company. The lawsuit alleges that RealPage’s algorithmic pricing tools enabled landlords across America to coordinate and artificially inflate rental prices, harming millions of renters by reducing natural competition.
How the Alleged Scheme Worked
According to the DOJ, RealPage’s software gathered confidential, non-public rental data from competing landlords—including lease terms and rental rates—and used this information to recommend pricing strategies. The DOJ asserts this allowed landlords to effectively synchronize their rents, eliminating competitive pressures that normally help control housing costs.
Major Landlords Also Named
The lawsuit expanded in January 2025 to include six major landlords, notably Greystar and Camden Property Trust. Together, these landlords manage over 1.3 million rental units spanning 43 states and the District of Columbia. They’re accused of conspiring to use RealPage’s software to collectively raise rental prices.
Financial Impact on Renters
This alleged scheme has significantly increased rental costs nationwide. In Houston alone, renters reportedly paid an average of nearly $996 more annually in 2023 due to these practices. Across the U.S., the inflated rental prices translated into approximately $3.8 billion in additional costs for renters.
Current Trends in the Rental Market
As of February 2025, the U.S. national median rent was approximately $1,691, marking the 19th consecutive month of overall rent decline. However, some cities experienced notable increases; for instance, Manhattan’s average rents rose by 7%, reaching $2,977. In contrast, Houston maintained affordability, with median advertised rents at $1,239, though future increases are anticipated due to declining new apartment construction.
Cities and States Respond
The lawsuit has prompted legislative actions across various regions. San Francisco and Philadelphia have enacted laws restricting the use of algorithmic rental pricing. Other regions, including San Diego and the state of New Jersey, are considering similar legislation aimed at preserving competitive pricing and protecting renters.
What Happens Next?
The outcome of this DOJ lawsuit against RealPage and associated landlords could fundamentally reshape how rental pricing software is regulated, potentially leading to increased renter protections and renewed scrutiny of algorithm-driven pricing across the housing market.
