District of Columbia Files Antitrust Lawsuit Against RealPage and 14 Residential Landlords | The Locally Times
The lawsuit alleges that the defendants utilized algorithmic pricing software to artificially inflate rental costs for over 100,000 residential units in the District of Columbia.
On November 15, 2024, the Office of the Attorney General for the District of Columbia initiated a civil antitrust lawsuit against the technology firm RealPage and 14 major residential property management companies. The legal filing asserts that these 15 entities engaged in a coordinated scheme to fix rental prices across the District of Columbia, impacting thousands of residents. According to the complaint, RealPage provided a centralized platform that processed private data from competitors to suggest rent increases, which the 14 landlords allegedly adopted to maximize profits. The lawsuit claims that this practice violates the District of Columbia Antitrust Act, which has been in effect since 1980. Records indicate that the 14 named landlords control portion of the local market, managing more than 100,000 apartment units within the region. By utilizing this algorithmic software, the defendants allegedly bypassed traditional market competition, leading to rent hikes that exceeded standard inflation rates by 5% to 10% in certain neighborhoods. The District of Columbia is seeking damages that could reach into the millions of dollars to compensate tenants who paid inflated prices over the last 5 years. The investigation into these business practices began in early 2023, following reports that similar software models were being scrutinized by federal regulators in 48 other states. The 14 landlords named in the suit include prominent firms that manage properties ranging from 500 units to over 5,000 units each. The complaint highlights that by sharing sensitive, non-public information through the RealPage platform, these 14 companies effectively eliminated the incentive to lower prices to attract new tenants. Data cited in the filing suggests that in some instances, the software recommended rent increases of 12% or more, even when vacancy rates in the area were rising. The Office of the Attorney General argues that this behavior constitutes a per se violation of antitrust laws, as it functions as a digital cartel. If the court finds in favor of the District of Columbia, the defendants could be forced to pay civil penalties of $10,000 per violation, in addition to providing restitution to affected renters. The litigation is expected to proceed through the Superior Court of the District of Columbia throughout 2025. This legal action follows a broader trend of oversight, as the Department of Justice has also been investigating RealPage since 2022 regarding potential anticompetitive conduct. The 14 landlords involved have been served with legal notices as of November 15, 2024, and are required to preserve all internal communications related to their use of the pricing software. The District of Columbia maintains that the transparency of the rental market has been compromised, affecting the affordability of housing for 100% of the tenants living in the affected properties. The case remains active as of November 2024, with the District of Columbia seeking a permanent injunction to prevent the continued use of these pricing algorithms.