Automated Price-fixing in Rental Markets Lawsuit

[Mike Ault]

DOJ Sues Six Large Landlords in Effort to Stop Alleged Price-Fixing in Rental Markets

Federal prosecutors allege that the landlords have used RealPage pricing software to collude and artificially raise rents. The legal action is the latest development stemming from a 2022 ProPublica investigation.

www.propublica.org

 

[jay trotta]

hmmm,
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. The suit seeks to end “their practice of putting profits over people” and to make housing more affordable.

Ahh, manipulating data, who knows how or who uses similar information against the public

 

[Terrel L. Shields]

Gee...sensitive information about rental prices? You mean like the Sunday newspaper and Craigslist? Ferd will be crushed.

 

[Dublin ohio]

Gee...sensitive information about rental prices? You mean like the Sunday newspaper and Craigslist? Ferd will be crushed.

Let alone the myriad of rental websites

 

[Charles West]

How do you artificially raise rents? I believe that's called the market, convince me otherwise.

 

[Terrel L. Shields]

Let alone the myriad of rental websites

yeah, I use an apartment rent site to hunt for rental info sometimes.

 

[TerryRohrer]

If they are serious about this and similar issues, it seems they should have started with the GSE's AVMs and their influence on property prices, which likely influence rents more directly than an app. After all, GSE AVMs weigh in on every transaction they are involved with, and very likely others, too. We seldom get pressure to lower our opinions of value, so the likely outcome is to promote price increases from manipulation.

 

[Mike Ault]

How do you artificially raise rents? I believe that's called the market, convince me otherwise.

The same way we could all get on here and decide that nobody pays less than $1000 for an appraisal. It's called "price-fixing". And it's illegal. And apparently, there is software out there facilitating it.

 

[Meandering]

Appraisers still need to modernize.

You could write a program for appraisers to input
the type of report - form required
intended use
property type
property location
any amenities that need comping
and time frame required to finish the report.

Your program could then determine the C&R fee, which appraisers can demand from their clients.

 

[Mike Ault]

Appraisers still need to modernize.

You could write a program for appraisers to input
the type of report - form required
intended use
property type
property location
any amenities that need comping
and time frame required to finish the report.

Your program could then determine the C&R fee, which appraisers can demand from their clients.

Add "commuting time" and "PIA factor", and I'm in! Most of us are too poor to bother sueing.