Attorney General Ferguson files antitrust lawsuit asserting RealPage helps landlords conspire to inflate rental prices in Washington
SEATTLE — Attorney General Bob Ferguson, in collaboration with a bipartisan group of eight attorneys general and the federal Department of Justice, filed a lawsuit today against RealPage, a national software company. The suit alleges that RealPage conspired with landlords to inflate rental prices.
The lawsuit claims that RealPage shared competitively sensitive, nonpublic data through its software with competing landlords to help them raise rents and maximize profits. An estimated 800,000 leases in Washington have been priced using RealPage revenue management software since 2017.
One potential client described the company's model as “classic price fixing.” Additionally, the lawsuit highlights that RealPage facilitates “user group” meetings between competing landlords where competitive information is shared and pricing discussions are encouraged. A RealPage vice president stated: “There is a greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the industry down.”
The complaint also asserts that the software encourages landlords to raise rents even when there are more vacant units on the market, artificially inflating rents. This practice has contributed to high housing costs in Washington state.
“RealPage colluded to fix prices and keep rents rising in order to boost profits,” said Ferguson. “The cost of housing is putting a strain on too many working families. My legal team and I will stand up to this collusion and fight for affordable rents for Washingtonians.”
Filed in the U.S. District Court for the Middle District of North Carolina, the lawsuit alleges violations of the federal Sherman Antitrust Act by RealPage. It claims that RealPage uses nonpublic data from landlords to feed its algorithm, producing coordinated pricing recommendations aimed at maximizing profits while reducing competition.
RealPage’s products—AI Revenue Management (AIRM), Yieldstar, and Lease Rent Options (LRO)—are accused of recommending rent increases even when occupancy rates fall. AIRM is noted as their newest product designed to replace Yieldstar and LRO.
Washington has some of the highest housing costs nationally. According to a National Low Income Housing Coalition report, it ranks fifth for "housing wage," requiring an hourly wage of about $40 or an annual income exceeding $83,000 for a two-bedroom home without spending over 30% on rent. The average renter's hourly wage stands at $29.
An analysis by The Washington Post revealed significant rent increases across several counties since 2019: Pierce (25%), Snohomish (25%), Whatcom (25%), Walla Walla (25%), Thurston (25%), Skagit (30%), Benton (30%), Spokane (30%), Chelan (41%). Nationally, rents rose approximately 19% during this period.
In 2021, around 10.4 million U.S. households spent over half their income on rent—a rise from about nine million households in 2019—and by 2022 this number increased further to 12.1 million households.
Ferguson initiated his investigation into these practices following a ProPublica story detailing how RealPage’s algorithm could be contributing to rising rents nationwide.
Ferguson's investigation found that RealPage collects sensitive data from users which feeds its algorithms used for revenue management software recommendations—often resulting in higher rents despite lower occupancy rates.
The lawsuit seeks cessation of these practices by RealPage and aims to prevent further exchange of sensitive information among landlords using their platform.
Assistant Attorneys General Brian Rowe, Rachel A. Lumen, Kendall Scott Cowles and Sarah Smith-Levy; Paralegals Alicia N. Stensland, Christina Baker, Kristina Clarke, Connor Hopkins, Tracy Jacoby and Kellie Tappan; Investigator Tony Perkins; and Economic Analyst Matthew Paskash are handling this case for Washington.
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