REALPAGE’S DOJ SETTLEMENT: WHAT ALGORITHMIC PRICING REALLY DID TO THE U.S. RENTAL MARKET

By Brian Mason — Real Estate Analyst, American Dream TV Host, Publisher of Arlington Living, and Founder of Signature Move Real Estate

INTRODUCTION

The Department of Justice recently announced its settlement with RealPage, the software company that quietly influenced rents for millions of Americans. After digging through the settlement documents, investigative reports, class-action filings, and state-level legislation, one uncomfortable truth stands out:

A $3.8 billion problem was resolved without financial penalties, without an admission of wrongdoing, and without addressing past renter harm.

This article breaks down exactly what happened, why it matters, and what the RealPage case signals for the future of algorithmic pricing across multiple industries.

WHAT THE DOJ SETTLEMENT SAYS — AND DOESN’T SAY

RealPage Controlled 80% of the Revenue Management Software Market

For years, RealPage collected confidential, real-time rental data from competing landlords—including occupancy rates, lease terms, and pricing strategies.

That Data Powered Its Pricing Algorithm

The algorithm then recommended rent prices based on shared, nonpublic competitor information. In practice, this produced coordinated pricing without traditional communication, meetings, or agreements.

The DOJ Settlement Bans Only Real-Time Nonpublic Data

RealPage:
✔ must stop using real-time confidential competitor data
✔ may still use nonpublic data at least one year old
✔ faces a three-year monitoring period

RealPage pays:
✘ no fines
✘ no restitution
✘ admits no wrongdoing

This leaves major questions about deterrence and accountability.

THE INVESTIGATION THAT EXPOSED THE PRACTICE

A 2022 ProPublica investigation revealed that RealPage’s system enabled landlords to coordinate prices algorithmically.

Legal experts described the behavior as:

“Cartel-like.”

Key findings included:

• Over 800,000 leases in Washington state alone (2017–2024) were priced using RealPage.

• Major landlords, including Greystar, relied on the algorithm.

• The White House estimated algorithmic pricing cost renters $3.8 billion in 2023 alone.

The investigation confirmed what renters suspected but couldn't prove:
prices weren't rising due to market forces alone.

WHAT THE SETTLEMENT ACTUALLY ACCOMPLISHES

A New Legal Precedent on Algorithms

The DOJ declared it “likely anticompetitive” for pricing software to use:

• nonpublic competitor data

• competitively sensitive information

• confidential industry inputs

This is the first major antitrust action targeting algorithmic collusion.

This Doesn’t Just Apply to Real Estate

Any industry using dynamic pricing with competitor data now faces scrutiny:

• airlines

• hotel chains

• ride-share companies

• e-commerce platforms

• ticketing systems

This settlement cracks open the door to broader algorithmic regulation.

WHY REALPAGE’S PENALTIES RAISE CONCERNS

RealPage profited for years from a system that:

• reduced competition

• inflated rents

• increased landlord coordination

• extracted billions from renters

Yet the settlement includes:

• no fines

• no damages

• no admission of wrongdoing

By contrast:

• Greystar paid $50 million

• over two dozen property managers settled

• multiple states passed bans on rent-setting software

RealPage itself walked away untouched financially.

This weakens deterrence for future companies tempted to build similar systems.

ALGORITHMIC COLLUSION VS TRADITIONAL PRICE-FIXING

Traditional price-fixing requires:

• explicit communication

• secret meetings

• coordinated agreements

Algorithmic collusion requires:

• a shared platform

• shared data

• no direct competitor contact

The result is the same:
coordinated pricing, reduced competition, and consumer harm.

This is why algorithmic collusion is the new frontier of antitrust law.

LEGAL AND MARKET EFFECTS MOVING FORWARD

1. Expect More Federal Enforcement

The DOJ and FTC are hiring technologists and data scientists who understand machine learning and pricing systems.

2. Expect More Class-Action Litigation

The RealPage playbook is now public. Attorneys already have a roadmap.

3. Expect Aggressive State-Level Regulation

California and New York banned rent-setting software entirely.
Philadelphia, Seattle, and other cities followed.

This trend will continue.

4. Expect Algorithms to Get More Sophisticated

Machine learning evolves faster than regulation.
The RealPage framework is already outdated.

The gap between technology and accountability is widening—fast.

THE CORE PROBLEM

The settlement provides:

• a precedent

• a warning shot

• a compliance framework

It does not provide:

• accountability

• restitution

• financial consequences

• deterrence

Millions of renters paid artificially inflated rents for years.

None of that is addressed.

FREQUENTLY ASKED QUESTIONS

Did RealPage pay any financial penalties?

No.

How much did algorithmic pricing cost renters?

An estimated $3.8 billion in 2023.

Can RealPage still use competitor data?

Yes—if it’s at least one year old.

Which companies paid settlements?

More than two dozen property management firms.

Have any states banned rent-setting algorithms?

Yes—California, New York, Philadelphia, Seattle, and more.

Does this impact other industries?

Absolutely.
Any pricing algorithm using competitor data faces antitrust risk.

KEY TAKEAWAYS

• RealPage helped coordinate rental prices algorithmically.

• Renters paid billions more than market-value rents.

• RealPage faces no fines and admits no wrongdoing.

• The DOJ now views use of nonpublic competitor data in pricing algorithms as anticompetitive.

• This precedent affects real estate, airlines, hotels, ride-sharing, retail, and beyond.

• Regulation is far behind the speed of algorithmic evolution.

ABOUT THE AUTHOR

Brian Mason
Luxury Real Estate Advisor | Market Analyst
Host, The American Dream TV (DMV Edition)
Publisher, Arlington Living Magazine
Signature Move Real Estate

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