There's a rent algorithm?

[Fernando]

MSN

New limits for a rent algorithm that prosecutors say let landlords drive up prices​

Landlords could no longer rely on rent-pricing software to quietly track each other’s moves and push rents higher using confidential data, under a settlement between RealPage Inc. and federal prosecutors to end what critics said was illegal “algorithmic collusion.”

The deal announced Monday by the Department of Justice follows a yearlong federal antitrust lawsuit, launched during the Biden administration, against the Texas-based software company. RealPage would not have to pay any damages or admit any wrongdoing. The settlement must still be approved by a judge.

RealPage software provides daily recommendations to help landlords and their employees nationwide price their available apartments. The landlords do not have to follow the suggestions, but critics argue that because the software has access to a vast trove of confidential data, it helps RealPage’s clients charge the highest possible rent.

“RealPage was replacing competition with coordination, and renters paid the price,” said DOJ antitrust chief Gail Slater, who emphasized that the settlement avoided a costly, time-consuming trial.

Under the terms of the proposed settlement, RealPage can no longer use that real-time data to determine price recommendations. Instead, the only nonpublic data that can be used to train the software’s algorithm must be at least one year old.

 

[Tom D]

Sounds like a rent monopoly service provided to it's group of subscribers. Instead of the group head setting the price, the program sets the price. Enough members do it, that group has a monopoly, or collusion, to set rent prices.

 

[Carnivore]

That only works when rental housing is limited and demand is high and government is restricting the development via zoning restrictions and regulation burden for more rental. development. What am I missing?

 

[Fernando]

Big rental subdivisons with many amenities are limited in supply and I can see how they can collude in setting rent.
The mom and pop rentals vary in location and condition thus more differences in asking rent.