How Regulators Are Cracking Down on Rent Price Fixing Beyond Algorithms

From software controversy to a broader rent-fixing crackdown

The recent wave of rent price-fixing cases started with a focus on technology. Investigations and lawsuits alleged that RealPage’s revenue-management software used confidential, nonpublic data from multiple competing landlords to recommend rents, encouraging them to move prices in tandem instead of competing for tenants.[fortune.com][propublica.org]

Class actions accused large operators of effectively forming a cartel through shared data and algorithmic recommendations. At the same time, federal and state enforcers argued that using a common tool fed by competitors’ information could cross the line from smart pricing into unlawful coordination.[fortune.com][propublica.org]

Over time, that narrow focus on a single software vendor has widened. Regulators are now targeting broader practices: direct discussions among landlords about rents and occupancy, participation in pricing meetings, and any system that relies on rivals’ nonpublic data to set prices. The message is that algorithms are not the only concern – it is the underlying sharing and use of competitive information.

Major settlements: Greystar, LivCor and other large operators

One of the biggest developments is the proposed $141 million class action settlement involving Greystar and more than two dozen other property management firms accused of using RealPage’s rent-setting tools to push up prices nationwide.[fortune.com] Under the deal, Greystar would pay about $50 million, with the rest coming from other operators, and the funds would be distributed to tenants in the settlement class. The companies deny wrongdoing but have agreed to change how they share data with the software provider.

Separately, federal enforcers reached a settlement with Greystar that requires the company to stop using certain forms of algorithmic rent-setting software and bars it from sharing some categories of nonpublic information with rivals through a common vendor.[propublica.org] This agreement is meant to prevent future coordination, not just compensate for past conduct.

The same playbook is now being applied to other major landlords. A proposed consent decree with LivCor, for example, would prohibit it from using algorithms that generate rental recommendations based on competitors’ data and from attending meetings where competing landlords discuss pricing. LivCor would also face oversight from a court-appointed monitor if it uses uncertified third-party tools.[legalreader.com]

Taken together, these settlements signal that large multifamily operators need to treat any shared pricing infrastructure as a potential antitrust risk. Even when rents are ultimately set by humans, relying on common tools that aggregate rivals’ data is now firmly in the enforcement crosshairs.

State-level actions: DC, New York, North Carolina and beyond

States and localities are adding their own layers of restrictions. In Washington, DC, the attorney general’s office reached a settlement with William C. Smith & Co. (W.C. Smith) over allegations that it used RealPage’s revenue-management software to coordinate rents with other large landlords. W.C. Smith agreed to pay about $1.05 million in civil penalties, tenant relief, and fees, and to stop using revenue-management tools that rely on competitors’ confidential data.[oag.dc.gov]

Elsewhere, state officials have filed lawsuits against landlords and RealPage over similar theories, arguing that sharing proprietary rent and occupancy data through a common platform allowed owners to behave more like a cartel than competitors.[propublica.org] In North Carolina, state officials announced a legal win aimed at stopping landlords from overpricing rentals, tying the outcome directly to concerns about rent-setting software and so-called ‘ghost’ prices that did not reflect real market conditions.[wral.com]

Lawmakers are also stepping in with bright-line rules. In New York, recently enacted legislation bans certain landlords from using rent-setting algorithms that rely on private information to determine what tenants pay, effectively cutting off one avenue for coordinated pricing in larger properties.[citylimits.org] The law pushes owners back toward independent pricing decisions and traditional market signals instead of black-box tools.

What this means for renters, landlords and investors

For renters, these cases offer two main forms of relief. First, class action settlements and government recoveries can translate into direct payments or credits for past overcharges, though the amounts per household will vary. Second, limiting shared data and algorithmic coordination should, over time, create more genuine competition on price, especially in markets where a few big operators control much of the multifamily stock.[fortune.com][oag.dc.gov]

For landlords and property managers, the enforcement wave is a clear warning to rethink revenue-management strategies. Any tool that relies on competitors’ nonpublic data, or any practice that involves discussing future rents with peers, now carries heightened legal and reputational risk. Compliance teams will need to scrutinize vendor contracts, data feeds, and internal policies on industry meetings and benchmarking.

Investors and lenders should incorporate these shifts into underwriting. Pro formas that quietly depended on coordinated pricing or aggressive algorithmic rent growth may no longer be realistic. Deals penciled on the assumption that "everyone in the submarket moves together" could see slower rent growth if competition increases and if more jurisdictions adopt rules limiting algorithmic tools.

The broader takeaway is that housing regulators are treating rent-setting much more like other concentrated industries where information sharing and common algorithms have been used to align prices. Whether using software or more traditional tactics, landlords are being pushed toward truly independent pricing – and tenants in large multifamily properties are likely to feel the effects over the next leasing cycles.