Attorney General Josh Stein has filed a lawsuit against RealPage, alleging the company engaged in illegal practices to raise rents. “Few things are as important as our homes – but too many North Carolinians struggle to afford their apartment,” Stein stated. “Rents are already too high. I will not tolerate any company scheming to block healthy competition among landlords. It raises rent, and it’s illegal.”
RealPage provides "revenue management software" to property managers nationwide, including significant operations in the Triangle and Charlotte-Mecklenburg areas. Property managers who purchase this software share detailed, nonpublic data with RealPage, such as information about available units, rental prices, and discounts.
According to the lawsuit, RealPage uses this confidential information to recommend rental prices that maximize profits for property managers. The company then employs various strategies to encourage clients to adopt these recommendations automatically. This practice allegedly leads to artificially inflated prices for comparable apartments, limiting renters' ability to find better deals.
“Between 2010 and 2020 the median rent in Wake County jumped up 40 percent,” noted Shinica Thomas, Chair of the Wake County Board of Commissioners. “That costs families an extra $4,200 a year. For a household that’s struggling to make ends meet, that can be the difference between stability and eviction.”
Monica Burks, Policy Counsel at the Center for Responsible Lending, added: “Access to affordable housing options is becoming increasingly difficult. Anti-competitive practices that inflate already high housing costs disadvantage individuals and families working hard to secure this basic need.”
The lawsuit follows a year-long investigation into RealPage that Attorney General Stein announced publicly in March 2024. Stein is seeking a court order to prevent RealPage and its associated property managers from sharing non-public information and engaging in schemes that inflate rent prices.
A copy of the complaint is available here.
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