The Justice Department has expanded its investigation into the rental housing market by initiating a criminal inquiry into a prominent developer of property pricing software and some of its clientele.
This move marks a significant escalation of the probe, which has been ongoing for at least two years and is seen as part of the Biden administration’s broader efforts to address anti-competitive practices across various sectors of the economy.
The Justice Department is examining whether RealPage’s software facilitates price-fixing among large residential property owners and management firms, potentially distorting market dynamics and leading to artificially inflated rents.
The probe represents a departure from previous civil investigations into the rental housing market and reflects the administration’s commitment to combating anti-competitive behavior.
President Biden has specifically highlighted the issue of high housing costs, emphasizing the need to address price-fixing and rent gouging by corporate landlords.
The investigation also aligns with ongoing legal actions, including class-action lawsuits and state-level inquiries, targeting RealPage and its clients. The allegations argue that RealPage’s software enables landlords to coordinate rent increases and restrict competition, ultimately harming renters.
However, critics contend that RealPage’s algorithms may enable price-fixing by facilitating the exchange of sensitive pricing data among competitors.
The Justice Department’s scrutiny of RealPage underscores broader concerns about information-sharing agreements and the potential for anti-competitive practices across various industries.
As the investigation unfolds, it could have significant implications for the rental housing market and may prompt regulatory changes aimed at promoting fair competition and affordability for renters.
