Settlement Limits RealPage's Rent-Pricing Algorithm

The U.S. Department of Justice (DOJ) has reached a proposed settlement with RealPage Inc., a Texas-based software company, to address allegations of illegal "algorithmic collusion" that allowed landlords to artificially inflate rental prices. This settlement, announced on November 25, 2025, follows a yearlong antitrust lawsuit initiated during the Biden administration. Under the terms of the agreement, RealPage will be prohibited from using real-time confidential data to inform its rent-pricing software, which provides daily recommendations to landlords across the country.

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The settlement aims to foster more genuine competition in local housing markets, as emphasized by DOJ antitrust chief Gail Slater. She stated that the agreement would lead to rents being determined by market forces rather than algorithmic manipulation. RealPage will now only be able to utilize nonpublic data that is at least one year old for its algorithm. This change is expected to impact how landlords set rental prices, potentially leading to lower rents for consumers.

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Despite the settlement's intentions, critics argue that it falls short of adequately addressing the broader issue of algorithmic price-fixing. Lee Hepner, senior legal counsel for the American Economic Liberties Project, described the settlement as having significant loopholes that may allow RealPage to continue influencing rental prices. Additionally, the company will not face any financial penalties, which has drawn criticism given that other companies have incurred substantial fines for similar practices.

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The settlement with RealPage is part of a larger trend of legal actions against landlords utilizing its software. Notably, Greystar, the largest landlord in the U.S., recently agreed to pay $7 million to settle a lawsuit alleging its involvement in a price-fixing scheme facilitated by RealPage. California Attorney General Rob Bonta has been actively pursuing these cases, asserting that the use of RealPage's software has led to coordinated rental price increases across various markets, particularly in Southern California.

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RealPage's attorney, Stephen Weissman, expressed satisfaction with the settlement, asserting that it clarifies the company's position and the value its software provides. Meanwhile, Dirk Wakeham, president and CEO of RealPage, described the agreement as a significant milestone that allows the company to focus on innovation and improving outcomes for both housing providers and renters.

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The proposed settlement awaits judicial approval, and if accepted, RealPage will be required to implement the outlined changes to its software. Additionally, the company will cooperate with ongoing investigations into other property management firms that have utilized its pricing algorithms. This case highlights the increasing scrutiny of technology's role in the housing market and the potential for further regulatory actions against similar practices.

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