The U.S. Justice Department has filed a lawsuit against several major landlords, accusing them of colluding to keep rents high across the country. The lawsuit, which also includes support from 10 states, alleges that these landlords used an algorithm to set rents and shared sensitive information with competitors to boost profits, further straining the already difficult housing market.
With U.S. renters facing escalating costs, the lawsuit highlights the growing financial burden on tenants. According to recent data, half of all American renters spent more than 30% of their income on rent and utilities in 2022—a figure that marks a record high. For many, this means difficult choices between paying rent and affording essentials like food, medicine, and school supplies. Evictions have also reached concerning levels, with 1.5 million people evicted annually, including many children, according to Princeton University’s Eviction Lab.
While the housing crisis is attributed to multiple factors, including a shortage of new housing construction, the Justice Department’s lawsuit targets six large landlords who collectively control over 1.3 million rental units across 43 states and Washington, D.C. These landlords are accused of conspiring to avoid lowering rents, which has been a major challenge for renters across the country.
Greystar Real Estate Partners LLC, one of the defendants named in the lawsuit, declined to comment directly but posted an unsung statement on its website, insisting that the company conducts its business with integrity. “At no time did Greystar engage in any anti-competitive practices,” the statement read, adding that the company would vigorously defend itself in court.
The lawsuit claims that these landlords shared critical rent data with competitors through emails, phone calls, and group discussions. This information allegedly included rental renewal rates, how often they accepted price recommendations from the algorithm, and even their pricing strategies for upcoming quarters.
In response to the lawsuit, one of the six landlords named in the suit agreed to cooperate with prosecutors. The proposed settlement would limit the ways in which the company can use competitors’ data and algorithms to set rental prices.
“This lawsuit seeks to end the practice of putting profits over people and make housing more affordable for millions across the nation,” said Doha Mekki, acting assistant attorney general for the Justice Department’s antitrust division.
The landlords are also being sued in connection with RealPage, a company that provides an algorithm to help landlords set rental prices. Prosecutors claim that the algorithm facilitates price-fixing by allowing landlords to align their rents and avoid competition that might lower costs. Jennifer Bowcock, senior vice president at RealPage, defended the company’s role, stating that its software is used in fewer than 10% of U.S. rental units and that price recommendations are not frequently followed. She also argued that the real issue behind high rents is the limited supply of housing.
The case highlights the ongoing struggle for affordable housing in the U.S. and the growing role of technology and corporate practices in shaping rent prices nationwide.
