Oregon Leads Push Against Algorithmic Rent Hikes in Landmark $7 Million Settlement
PORTLAND, OR – In a significant development for housing affordability across the nation, the Rent-Fixing Algorithms Settlement with Greystar Management Services, LLC, the country’s largest landlord, has been proposed at $7 million. This agreement, involving Oregon and eight other states, aims to halt the use of algorithmic software that allegedly enabled landlords to artificially inflate rent prices. This move represents a crucial step in combating what state officials describe as illegal price-fixing and anti-competitive practices in the rental housing market.
The proposed settlement, filed in the U.S. District Court for the Middle District of North Carolina, stems from a January 2025 lawsuit brought by a bipartisan coalition of state attorneys general. At the heart of the allegations is RealPage, a Texas-based software company whose revenue management system, known as YieldStar, is accused of facilitating an “algorithmic pricing scheme” that is a key focus of the Rent-Fixing Algorithms Settlement.
The Allegations: Algorithmic Collusion Uncovered by the Rent-Fixing Algorithms Settlement
According to the states’ complaints, Greystar and other large landlords utilized RealPage’s software to share competitively sensitive data, including rental rates and occupancy levels. This data was then fed into RealPage’s algorithms, which generated pricing recommendations designed to maximize profits for landlords rather than reflect true market competition. The lawsuit alleges that by sharing proprietary data and relying on these algorithms, landlords effectively engaged in rental market collusion to set rents in lockstep, thereby eliminating the natural competition that would typically drive prices down. This practice is directly addressed by the Rent-Fixing Algorithms Settlement.
State officials contend that this practice is akin to “smoke-filled backroom deals” but executed digitally, leading to artificially high rents and exacerbating the ongoing housing affordability crisis for millions of Americans. California Attorney General Rob Bonta stated, “Whether it’s through smoke-filled backroom deals or through an algorithm on your computer screen, colluding to drive up prices is illegal”. This sentiment underpins the importance of the Rent-Fixing Algorithms Settlement.
A $7 Million Settlement for Renters: Part of the Rent-Fixing Algorithms Settlement
The proposed settlement requires Greystar to pay $7 million to the participating states, which will then distribute the funds. This financial resolution is coupled with stringent non-monetary terms designed to prevent future anti-competitive practices, a core aim of the Rent-Fixing Algorithms Settlement. If approved by the court, Greystar will be prohibited from using any rent-setting software that relies on competitors’ confidential data or incorporates certain anti-competitive features. Furthermore, the company must refrain from sharing competitively sensitive information with rivals and agree to enhanced oversight if it employs third-party pricing algorithms. This landlord settlement is a significant outcome.
Greystar: The Nation’s Largest Landlord Under Scrutiny in the Rent-Fixing Algorithms Settlement
Greystar Management Services, a major player in the rental housing industry, manages a vast portfolio of nearly 950,000 rental units nationwide. In Oregon, Greystar managed approximately 19,000 units in Portland in 2023, making its practices of significant interest to state residents. The scale of Greystar’s operations underscores the potential impact of its alleged involvement in an algorithmic pricing scheme on a national level, a key concern addressed by the Rent-Fixing Algorithms Settlement.
RealPage: The Software at the Center of the Storm in the Rent-Fixing Algorithms Settlement
RealPage, the software provider, remains a central figure in the ongoing legal battles surrounding the Rent-Fixing Algorithms Settlement. The company provides various revenue management software products, including YieldStar, which are designed to suggest rent prices based on market data. While RealPage denies allegations of wrongdoing, arguing its software is misunderstood and that insufficient housing supply is the primary driver of high rents, antitrust regulators and state attorneys general maintain that its platform enables illegal collusion. The Department of Justice previously filed a lawsuit against RealPage, alleging violations of federal antitrust laws, and the Rent-Fixing Algorithms Settlement with Greystar is a consequence of these broader investigations.
Oregon’s Fight for Affordable Housing and the Rent-Fixing Algorithms Settlement
Oregon Attorney General Dan Rayfield emphasized the settlement’s importance for the state’s residents. “We’re in the middle of a housing crisis, and families are already stretched to their limits,” Rayfield stated. “When the largest landlord in America uses an algorithm to price fix the rent, the result is simple: people pay more. It squeezes working families when the cost of housing is already at an all-time high. This settlement holds the largest U.S. landlord accountable. It’s a win for Oregonians, our pocketbooks, and the rule of law”. This news comes shortly after the Portland City Council voted to ban algorithmic price fixing, signaling a coordinated effort to address the issue, further reinforcing the impact of the Rent-Fixing Algorithms Settlement.
Implications for Renters and the Market Following the Rent-Fixing Algorithms Settlement
The settlement, if approved by the court, is expected to bring much-needed relief to renters who have faced escalating housing costs. By preventing the use of algorithms that facilitate price collusion, the agreement aims to restore competition to the rental market, potentially leading to more stable or lower rent prices. This development could also serve as a deterrent to other property management companies and software providers engaging in similar practices, a crucial outcome of the Rent-Fixing Algorithms Settlement.
Legal Next Steps and Ongoing Litigation Related to the Rent-Fixing Algorithms Settlement
While Greystar has reached a settlement, litigation against RealPage and other corporate landlords accused of participating in the scheme is ongoing. The proposed settlement requires judicial approval, and its finalization will mark a significant victory for consumer protection advocates and renters nationwide, stemming from the Rent-Fixing Algorithms Settlement.
Conclusion on the Rent-Fixing Algorithms Settlement
The $7 million settlement with Greystar represents a critical win in the fight against algorithmic price-fixing in the rental market, making the Rent-Fixing Algorithms Settlement a landmark event. This news highlights the growing efforts by state governments, including Oregon, to ensure fair practices and housing affordability, and it signals a potential shift in how rents are determined across the country. The ongoing legal actions against RealPage and other entities underscore the commitment of law enforcement to hold accountable those who allegedly exploit technological advancements for anti-competitive gain.
