Key Takeaways

• The RealPage settlement ends the DOJ’s antitrust lawsuit without fines or admissions of guilt.
• Renters saw slight relief when the case was active, but now face renewed risks.
• Nine states refuse to accept the RealPage settlement and keep fighting.
• Experts call the RealPage settlement too weak to curb algorithmic rent hikes.
• RealPage plans to use the deal to challenge new state laws against price fixing.

RealPage settlement draws fierce criticism

The Justice Department dropped its antitrust case against RealPage. Instead of penalties, it agreed to a deal that keeps RealPage’s rent-setting software free of blame. As a result, renters across the country remain vulnerable to price hikes driven by secret algorithms.

How the RealPage settlement unfolded

Earlier this year, the DOJ under President Biden sued RealPage for using data tools that let big landlords coordinate rent increases. Soon after taking office, the Trump antitrust chief ended that case. Despite claims of protecting consumers, the RealPage settlement demands no payments or wrongdoing admissions. RealPage’s lawyer even called the deal a “blessing.”

Why renters briefly saw relief

Before the RealPage settlement, rent growth slowed. Analysts saw a 0.3 percent national rent drop from August. That small relief came because the DOJ lawsuit forced landlords to pause algorithmic price fixes. However, once the case ended, that check on collusion disappeared.

States rebel against the RealPage settlement

Nine states that joined the original case refused to sign the RealPage settlement. They argue it leaves renters unprotected. These states vow to continue legal action. In a healthy democracy, they say, antitrust enforcers should defend consumers, not help big firms dodge responsibility.

What the RealPage settlement means for affordability

Millions of families struggle to afford rent, groceries, and health care. By one estimate, algorithm-driven rent fixing cost Americans three billion dollars extra. In Phoenix alone, tenants overpaid by 30 percent. With the RealPage settlement wiping out consequences, that unfair system can keep running.

Experts slam the weak RealPage settlement

Former federal trade commissioner Lina Khan called the RealPage settlement “too weak to describe as a slap on the wrist.” She warned that RealPage will use this deal to fight new state laws banning algorithmic price fixing. In fact, the company already sued New York after its governor outlawed such software.

How RealPage benefits from the settlement

Without admitting guilt, RealPage can keep selling its rent-management tools. It also gained a new argument in court: its business is “fair game” under the DOJ deal. Therefore, any attempt by states to ban algorithmic collusion may face costly legal fights funded by RealPage.

What happens next after the RealPage settlement

States that refused to join plan to press on with their lawsuits. Consumer groups may push Congress to set clear rules on algorithmic tools. Meanwhile, renters face higher costs if landlords resume using RealPage software to set prices without oversight.

Why this matters to you

Even young people feel the impact when rent climbs. Families need fair competition to keep housing costs down. When antitrust cases end in soft deals like the RealPage settlement, big companies gain power over everyday expenses. As a result, consumers lose out.

Looking ahead

Pressure will build on the Justice Department to revisit its approach. Lawmakers may push for tougher rules on data-driven collusion. In the end, renters hope stronger enforcement will prevent secret algorithms from driving up their bills again.

FAQs

What is the RealPage settlement about?

The RealPage settlement ends a DOJ lawsuit against a software firm accused of helping landlords fix rent prices. It includes no fines or admissions of guilt.

Why are states opposing the RealPage settlement?

Nine states say the settlement fails to protect renters and lets RealPage avoid real consequences for its alleged price-fixing tools.

How did algorithmic price fixing affect rents?

By analyzing market data, software could set rents higher and keep competing properties off the market, costing Americans billions extra.

Can Congress stop software-driven collusion?

Yes. Lawmakers can create laws that ban or regulate algorithmic tools that enable price fixing, ensuring fair competition in housing markets.