The Department of Justice has launched a legal assault against six of the nation's titanic landlords, accusing them of algorithmic collusion, as reported by the DOJ's official release. These companies, responsible for the roof over a cumulative total of more than 1.3 million rental units, span 43 states and Washington, D.C. They are charged with artificially inflating rent prices, putting the squeeze on a multitude of American renters.
In Austin, the ramifications of this alleged collusion are being felt keenly by tenants like Mei Ling McCann. Having been regularly toeing the line between making ends meet and financial underwater, McCann expressed her dismay surrounding the accusations against her apartment's owners, Cushman and Wakefield. "I've been struggling here and there, just to make rent, just to be basically price gouged underneath my nose," she told CBS Austin.
Acting Assistant Attorney General Doha Mekki explained, "While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high." The involved companies have been leveraging a property management software called RealPage to allegedly orchestrate their rent-setting strategies, based on each other's "competitively sensitive information," CBS Austin reported. The use of this software is at the heart of the issue, with the DOJ asserting that the collusion reaches beyond its digital bounds, including direct communication about rental rates between senior management of competing entities.
Furthermore, the CBS Austin report underlines that Cortland, a major player in the industry with more than 80,000 rental units spread over 13 states, has agreed to settle. The settlement includes Cortland's cooperation with the DOJ's continuing investigation and a cessation of using competitors' data or employing pricing algorithms without oversight. "We look forward to putting the federal government’s investigations behind us in 2025," Cortland stated, heralding an end to what has been a shadow over its operations.
Responses from the landlords in question vary. Camden Property Trust firmly disagrees with the allegations, readying for a legal battle with intentions to "vigorously defend itself against these claims," as mentioned in a statement to CBS Austin. Greystar, another giant named in the suit, has expressed disappointment over being added to the case, emphasizing integrity and denying engagement in anti-competitive practices, according to their statement.
For tenants like McCann, the lawsuit represents a glimmer of hope in what feels like a relentless struggle with rental costs. She posits the necessity of state intervention in conjunction with the lawsuit. "We can voice our discomfort, but the lawmakers have to do something about it," McCann advocated in her interview with CBS Austin. As the legal processes unfold, millions of renters remain in limbo, waiting to see if the action by the DOJ paves the way for a more equitable housing market.
