In what could be a groundbreaking case, Arizona Attorney General Kris Mayes has announced a lawsuit against software company RealPage and nine major residential apartment landlords. The suit accuses them of colluding to artificially inflate rents in the Phoenix and Tucson metropolitan areas, marking a significant moment in the ongoing discussion around housing affordability in the United States.
According to Attorney General Mayes, this alleged conspiracy has led to a surge in residential rents, with increases of at least 30% over the last two years in Arizona’s two largest metro areas. This dramatic rise in living costs comes at a time when 36% of Phoenix households and 37% of Tucson households, who are renters, have seen their financial burdens grow exponentially. Since 2016, Phoenix renters have experienced a 76% jump in rent prices, while their Tucson counterparts have faced a 30% increase.
The lawsuit names several well-known apartment management firms, including Apartment Management Consultants LLC, Greystar, and Camden Property Trust, among others. RealPage, the software company at the center of these allegations, is accused of providing detailed, nonpublic leasing data that facilitated a price-fixing conspiracy across the rental market. This collusion, Mayes argues, not only stifled fair competition but also established a rental monopoly in Phoenix and Tucson, exacerbating Arizona’s affordable housing crisis.
Tenants have voiced their frustrations, noting that despite soaring rent prices, there have been no significant improvements to their living conditions. Some renters have even been priced out of their homes as a result. The heart of the issue, according to the lawsuit, lies in RealPage’s revenue management software. This tool allegedly allowed landlords to set rent prices collectively, using competitively sensitive data to manipulate the market in their favor.
The implications of this case are far-reaching. Beyond seeking restitution for affected renters, the lawsuit aims to compel landlords to cease the use of RealPage and similar software, challenging the legality of using algorithms and software to set rental prices. The Department of Justice has also weighed in, underscoring that automating an anticompetitive scheme does not make it any less unlawful.
As this legal battle unfolds, it highlights a critical issue: the intersection of technology, market competition, and consumer rights. If the allegations prove true, this case could set a precedent for how data and algorithms influence the housing market and the broader economy. It’s a reminder of the power of technology to shape our lives, not always for the better, and the importance of vigilant oversight to ensure fair play in the marketplace.
Related posts:
Arizona attorney general sues RealPage, landlords; accuses them of conspiring to illegally raise rents
Attorney General Mayes Sues RealPage and Residential Landlords for Illegal Price-Fixing Conspiracy
Illegal rent scheme allegedly fed Arizona’s affordable housing crisis
