Major Settlement Reached with Nation’s Largest Landlord Over Rent Price Manipulation – What It Means for Raleigh Renters

Federal authorities crack down on algorithmic pricing scheme that may have artificially inflated rents across the Triangle.

Raleigh-area renters may soon see relief from a controversial pricing practice that federal authorities say has been driving up rental costs across the country. The U.S. Department of Justice announced a proposed settlement with Greystar Management Services LLC – the nation’s largest landlord with significant holdings in the Triangle – over allegations that the company participated in an algorithmic pricing scheme that artificially inflated rents.

What Happened?

Greystar, which manages nearly 950,000 rental units nationwide including properties throughout the Raleigh-Durham area, has been accused of collaborating with other major landlords to share sensitive pricing data through RealPage’s rental pricing software. According to federal investigators, this data-sharing allowed landlords to coordinate rent prices rather than compete independently – a practice that potentially cost renters millions in inflated housing costs.

The scheme worked by having landlords feed their proprietary rental data into RealPage’s algorithms, which then generated pricing “recommendations” based on what competitors were charging. Federal authorities argue this eliminated true price competition and kept rents artificially high across markets, including here in the Triangle.

Impact on Triangle Renters

For Raleigh-area residents struggling with rising housing costs, this settlement represents a significant development. The Triangle has experienced dramatic rent increases in recent years, with many attributing the surge to population growth and housing shortages. However, this investigation reveals that algorithmic price coordination may have been an additional factor driving up costs for local renters.

Greystar’s extensive Triangle portfolio means this settlement could have meaningful implications for rental pricing across Wake, Durham, and surrounding counties where the company operates properties.

What the Settlement Requires

Under the proposed consent decree, Greystar must agree to several key restrictions:

Ending Algorithmic Coordination: The company cannot use anticompetitive algorithms that generate pricing recommendations based on competitor data.

Stopping Data Sharing: Greystar is prohibited from sharing sensitive pricing information with competing landlords.

Enhanced Oversight: If the company chooses to use third-party pricing software in the future, it must accept court-appointed monitoring.

Transparency Requirements: Greystar must cooperate with ongoing federal investigations into RealPage and the broader algorithmic pricing industry.

Meeting Restrictions: The company cannot participate in RealPage-hosted gatherings of competing landlords.

Federal Crackdown Continues

This settlement is part of the Trump-Vance Administration’s broader effort to address housing affordability for working families. Attorney General Pamela Bondi emphasized the administration’s commitment to helping Americans afford basic necessities like housing.

“Whether in a smoke-filled room or through an algorithm, competitors cannot share competitively sensitive information or align prices to the detriment of American consumers,” said Assistant Attorney General Abigail Slater, highlighting how modern technology can facilitate the same anti-competitive practices that have been illegal for decades.

What’s Next for Raleigh Renters?

While this settlement is a positive step, renters shouldn’t expect immediate rent reductions. The decree focuses on preventing future anti-competitive behavior rather than rolling back past rent increases. However, the increased scrutiny on algorithmic pricing practices across the industry may lead to more competitive rental markets going forward.

The settlement still requires court approval, and federal authorities continue investigating RealPage and other companies involved in the algorithmic pricing industry. Additional settlements and enforcement actions may follow, potentially providing further relief to renters in high-cost markets like the Triangle.

Looking Forward

This case highlights the evolving nature of anti-competitive practices in the digital age. As algorithms become more sophisticated and widespread in real estate, federal regulators are adapting their enforcement strategies to protect consumers from new forms of price manipulation.

For Triangle-area renters, this settlement serves as a reminder that housing affordability challenges stem from multiple factors – some of which, like algorithmic price coordination, can be addressed through aggressive antitrust enforcement.

Tor read more visit, Landlord Greystar Management accused in algorithmic pricing scheme on rental properties reaches proposed settlement with DOJ – ABC11 Raleigh-Durham.