- cross-posted to:
- housing_bubble_2@lemmy.world
- aboringdystopia@lemmy.world
- cross-posted to:
- housing_bubble_2@lemmy.world
- aboringdystopia@lemmy.world
The surprise search was reportedly part of a criminal antitrust investigation by the U.S. Department of Justice (DOJ) into RealPage, a $9 billion software company that recommends rent raises on millions of housing units across the U.S.
The problem with RealPage, according to multiple lawsuits filed in the past two years in California, Arizona, New York, and other states, is that its algorithm increases rental prices in response to data collected from landlords — not according to demand.
Landlords “were not competing at all,” Arizona Attorney General Kris Mayes stated in a February lawsuit announcement against RealPage.
“They were colluding with one another,” Mayes said.
According to the Arizona lawsuit, and others filed, landlords gave RealPage detailed information about rent prices, lease terms, amenities, move-out dates, and occupancy rates.
“Using this sensitive data RealPage directed the competitors on which units to rent, when to rent them, and at what price,” Mayes stated. “This was not a fair market at work, this was a fixed market.”
To absolutely no one’s surprise.