DOJ Files Lawsuit Against 6 Major Landlords in Alleged Price Gouging Scheme

The U.S. Department of Justice (DOJ) has filed an antitrust lawsuit against six major landlords, accusing them of engaging in a scheme to keep rent prices artificially high. The lawsuit alleges that these landlords used both an algorithm and privately shared sensitive information to coordinate rent prices, thereby avoiding competitive pricing that would naturally lower rents. The landlords named in the lawsuit are Camden, Greystar, Cushman & Wakefield, LivCor, Cortland, and Willow Bridge, collectively managing over 1.3 million apartment units across 43 states and the District of Columbia.

The DOJ's action focuses on the landlords' use of software from RealPage, which allegedly helps set rents by analyzing competitors' sensitive data, thus allowing landlords to align their prices without directly negotiating. This practice is said to harm millions of American renters by depriving them of the benefits of competition in the apartment leasing market. One of the landlords, Cortland, has agreed to a proposed settlement that includes cooperation with the government and restrictions on how they can use competitors' data to set rents.

The lawsuit comes at a time when many Americans are facing high housing costs, with half of American renters spending more than 30% of their income on rent and utilities, an all-time high as of the latest figures from 2022. This situation has led to significant financial strain for many, including decisions between basic necessities and rent, and high eviction rates, particularly affecting children