In a significant move that's catching the eye of renters and housing market analysts alike, Greystar, the nation's largest landlord, has reached a $7 million settlement with nine states over allegations of using rent-setting algorithms to artificially inflate housing costs. The lawsuit, which implicates the property management behemoth in anticompetitive practices, accuses Greystar of leveraging software to align prices amongst properties, thus hampering the affordable housing landscape.
As reported by 9News, the deal, which is pending judicial approval, springs from broader antitrust actions against RealPage and companies utilizing similar software. California's Attorney General Rob Bonta lashed out at the perceived collusion, stating, "Whether it's through smoke-filled backroom deals or through an algorithm on your computer screen, colluding to drive up prices is illegal." In a show of resolve evident in a public release, he added, "Companies that intentionally fuel this unaffordability by raising prices to line their own pockets can be sure I will use the full force of my office to hold them accountable," as per 9News.
The settlement, detailed in coverage by CBS News Colorado, mandates that Greystar desist from employing software that employs other landlords' private data for rent determination. Greystar is also individually tackling a class-action lawsuit with a separate $50 million agreement over its usage of RealPage software. The announcement comes in the wake of legislative efforts in places like California and New York, where state authorities have enacted laws to clamp down on such rent-setting software and practices.
According to KDVR, Colorado Attorney General Phil Weiser articulated the broader implications of the settlement: "Coloradans are struggling to pay monthly rent. When corporate landlords share private data and use algorithms to coordinate and jack up rent prices, renters pay the price." He underscored the commitment to protect consumer interest: "This settlement sends a clear message: we will not tolerate practices that enable collusion, harm competition, and make housing less affordable for Coloradans," as obtained by KDVR. Colorado is poised to receive over $1 million from the settlement to bolster state antitrust enforcement and consumer protection efforts.
