In a move striking directly at the heart of the housing affordability crisis, the Department of Justice (DOJ) has acted upon concerns raised by Arizona Congressman Ruben Gallego and filed a civil antitrust lawsuit against RealPage Inc., a key player in rental pricing strategies. This legal action aims to dismantle practices that have been blamed for astronomical rent hikes impacting countless residents in multifamily housing.
As reported by Gallego's official House page, the DOJ lawsuit comes after Gallego urged federal scrutiny over RealPage – whose algorithm-driven pricing model is accused of inflating rental prices across Arizona, the grip of this software extends to approximately 90% of the U.S. multifamily housing market, therefore wielding significant power over what families pay to put a roof over their heads, realistic pricing seems elusive as residents of Phoenix, where the software is in use, have been burdened with paying 12% more than the fair market rate for similar apartments not under the RealPage regime.
"Earlier this year, I called on the Administration to investigate RealPage because I saw the negative impacts their unfair practices were having on Arizonans – raising rents and overcharging hardworking families by more than ten percent," Gallego said on the press release, voicing his concerns over the troubling trend of unattainable rents for his constituents. His diligent advocacy translated into a concrete step as the Department of Justice took heed and advanced the fight against what is being labeled as monopolistic maneuvering.
Gallego's earlier, proactive measure in March involved dispatching a letter to the Federal Trade Commission (FTC), pushing for a thorough investigation into RealPage's operations. This letter set the stage for the current DOJ litigation as federal agencies combine forces to scrutinize and possibly dismantle RealPage's stronghold on rental pricing, which could spell relief for families struggling to afford their homes. "I’m glad that the DOJ has followed my lead and is working to stop these unfair, anti-competitive practices. I will never stop fighting for the affordable housing Arizonans deserve," Gallego asserted in a display of resolution to see this battle through to the end, according to his official website.
