{"id":4069,"date":"2023-03-06T18:28:50","date_gmt":"2023-03-06T18:28:50","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2023\/03\/06\/u-s-senators-ask-the-doj-to-investigate-realpage\/"},"modified":"2025-03-13T02:49:39","modified_gmt":"2025-03-13T02:49:39","slug":"u-s-senators-ask-the-doj-to-investigate-realpage","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2023\/03\/06\/u-s-senators-ask-the-doj-to-investigate-realpage\/","title":{"rendered":"U.S. senators ask the DOJ to investigate RealPage"},"content":{"rendered":"\n<p>Four Democratic U.S. senators have asked the Department of Justice (DOJ) to examine whether <strong>Thomas Bravo LLC<\/strong>\u2019s rental software company <strong>RealPage Inc<\/strong>. is causing <a href=\"https:\/\/www.housingwire.com\/tag\/rent-prices\/\" target=\"_blank\" rel=\"noreferrer noopener\">rents<\/a> to rise nationwide via its pricing software.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/2023.03.02%20Letter%20to%20DOJ%20re%20YieldStar%20(RealPage).pdf\" target=\"_blank\" rel=\"noreferrer noopener\">In a letter<\/a> sent Thursday to U.S. Assistant Attorney General for Antitrust Jonathan Kanter, &nbsp;Senators Elizabeth Warren of Massachusetts, Bernie Sanders of Vermont, Tina Smith of Minnesota, and Edward J. Markey of Massachusetts asked the DOJ to investigate the impact of RealPage\u2019s <strong>YieldStar<\/strong> rental pricing software on consumers and inflation.<\/p>\n\n\n\n<p>\u201cGiven YieldStar\u2019s market share, even the widespread use of its anonymized and aggregated proprietary rental data by the country\u2019s largest landlords could result in de-facto price-setting by those companies, driving up prices and hurting renters,\u201d the senators wrote in the letter.<\/p>\n\n\n\n<p>YieldStar software is used by many of the nation\u2019s largest property management companies, including <strong>GreyStar Real Estate Partners LLC<\/strong>, <strong>Camden Property Trust<\/strong>, and <strong>Mid-American Apartments LP<\/strong>, to set prices on 20 million <a href=\"https:\/\/www.housingwire.com\/tag\/rental-properties\/\" target=\"_blank\" rel=\"noreferrer noopener\">rental units<\/a> \u2014 or roughly 8% of all homes for rent in the U.S.<\/p>\n\n\n\n<p>According to the senators\u2019 letter, the rise of \u201cinstitutional investors and rent-setting algorithms have weakened competition in the already strained housing market, resulting in substandard services and unnecessarily high housing costs for American families.\u201d<\/p>\n\n\n\n<p>Since the onset of the pandemic in March 2020, <a href=\"https:\/\/ycharts.com\/indicators\/us_median_asking_rent\" target=\"_blank\" rel=\"noreferrer noopener\">the median asking rent<\/a> in the U.S. had risen 26.9% to $1,322 as of December 2022.<\/p>\n\n\n\n<p>It\u2019s \u201cessential that the department use all of its tools to ensure that renters do not fall victim to corporate landlords and anti-competitive forces,\u201d the senators wrote.<\/p>\n\n\n\n<p>&#8220;RealPage appreciates the opportunity to work with the senators\u2019 offices and, more generally, we are always willing to engage policy stakeholders to ensure an informed and comprehensive understanding of the benefits we contribute to the rental ecosystem,&#8221; a RealPage spokesperson wrote in an email.<\/p>\n\n\n\n<p>In November 2022, the DOJ <a href=\"https:\/\/www.propublica.org\/article\/yieldstar-realpage-rent-doj-investigation-antitrust\" target=\"_blank\" rel=\"noreferrer noopener\">opened an investigation<\/a> into RealPage after a <strong>ProPublica<\/strong> <a href=\"https:\/\/www.propublica.org\/article\/yieldstar-rent-increase-realpage-rent\" target=\"_blank\" rel=\"noreferrer noopener\">investigation in October<\/a> found that RealPage\u2019s software could potentially be the source of some of the nation\u2019s rising rent problems.<\/p>\n\n\n\n<p>RealPage is also facing a <a href=\"https:\/\/www.propublica.org\/article\/realpage-accused-of-collusion-in-new-lawsuit\" target=\"_blank\" rel=\"noreferrer noopener\">lawsuit filed by renters<\/a> in U.S. District Court in San Diego alleging that RealPage and nine of the nation\u2019s biggest property managers, including Greystar, <strong>Lincoln Property Company<\/strong>, <strong>Equity Residential<\/strong>, Mid-America and <strong>FPI Management<\/strong>, formed a cartel to artificially inflate rents in violation of federal law.<\/p>\n\n\n\n<p>In January, President Biden tasked the DOJ with <a href=\"https:\/\/www.housingwire.com\/articles\/biden-administration-rolls-out-renter-protections-as-rent-prices-soar\/\" target=\"_blank\" rel=\"noreferrer noopener\">addressing anti-competitive information sharing practices<\/a> in the housing market.<\/p>\n\n\n\n<p><em>This article was updated to include commentary from RealPage.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Four Democratic U.S. senators have asked the DOJ to investigate the influence RealPage&#8217;s YieldStar software has had on rent price inflation.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-4069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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