DOJ settles with RealPage over rent algorithm
The Justice Department announced a proposed settlement with Texas-based RealPage Inc. that would bar the company’s rent-pricing software from using real-time nonpublic data, allowing only nonpublic data at least a year old to train its algorithm. RealPage will not pay damages or admit wrongdoing; the deal, stemming from a federal antitrust suit launched under the Biden administration, requires a judge’s approval and follows parallel state actions and recent settlements by major property managers.
📌 Key Facts
- DOJ announced the settlement on Nov. 24, 2025; judicial approval is required.
- Terms restrict RealPage from using real-time nonpublic data; only nonpublic data that are ≥1 year old may train the algorithm.
- RealPage pays no damages and admits no wrongdoing; ten states joined DOJ’s suit but were not part of Monday’s settlement.
- Context: Greystar agreed to $50M to settle a class action and $7M to settle a multistate suit over RealPage use.
📊 Relevant Data
Anticompetitive pricing algorithms like RealPage's cost renters in utilizing buildings an average of $70 a month, with total costs to renters estimated at $1.8 billion annually in 20 major metro areas.
The Cost of Anticompetitive Pricing Algorithms in Rental Housing — White House Council of Economic Advisers
Research confirms a meaningful correlation between RealPage usage and higher rents, providing evidence of increased rental costs associated with algorithmic collusion.
Investigation of Alleged Rental Price-Fixing via “Algorithmic Collusion” by RealPage and Other Real Estate Tech Firms — UC Berkeley School of Information
RealPage's historical use of aggregated and anonymized nonpublic data has allegedly led to lower rents, less vacancies, and more procompetitive effects, according to the company.
Data debate — UF Warrington College of Business
In 2022, 51% of Black renter households and 49% of Hispanic renter households were cost-burdened (spending more than 30% of income on rent), compared to 42% of white renter households.
Housing burden United States — National Equity Atlas
Racial disparities in rent burden are partly due to higher homeownership rates and higher incomes among white households, resulting from decades of racial discrimination in housing and lending.
Racial Disparities Among Extremely Low-Income Renters — National Low Income Housing Coalition
Black and Latinx renters are more likely to be rent-burdened due to systemic factors like lower incomes and historical exclusion from wealth-building opportunities, though some studies suggest that even after controlling for income, disparities persist allegedly due to ongoing discrimination.
Racial Disparities in Rental Debt — Community Solutions
A study found that RealPage's software helps landlords push rents 3-7% higher than competitive levels, contributing to higher costs for renters.
How Algorithms and Monopolies Hurt Tenants – and How Tech Can Help — National Community Reinvestment Coalition
RealPage's software allegedly prevents rents from reaching unaffordable levels by detecting drops in demand, potentially leading to more stable pricing, according to the company.
Rent Going Up? One Company's Algorithm Could Be Why. — ProPublica