The U.S. Justice Department is suing six major landlords for allegedly collaborating to keep rents high. The lawsuit accuses the landlords of using RealPage's rent-setting algorithm and sharing sensitive data to avoid lowering rents. Prosecutors claim these practices have contributed to rising rental costs, with over half of U.S. renters spending more than 30% of their income on rent in 2022. Greystar and RealPage deny the allegations, emphasizing their integrity and limited algorithm use. The settlement would limit the company's use of competitors' data and algorithms to set rents.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02The US Justice Department is suing six major landlords for allegedly collaborating to keep
00:06rents high. The lawsuit accuses the landlords of using RealPage's rent-setting algorithm
00:11and sharing sensitive data to avoid lowering rents. Prosecutors claim these practices have
00:16contributed to rising rental costs, with over half of US renters spending more than 30% of
00:21their income on rent in 2022. Greystar and RealPage denied the allegations, emphasizing
00:27their integrity and limited use of the algorithm. The settlement would limit the company's use of
00:31competitors' data and algorithms to set rents. For all things money, visit Benzinga.com slash GSTV.