Justice Department Sues Landlords Over Rent-Fixing Scheme

The US Justice Department is taking legal action against several landlords accused of collaborating to artificially maintain high rent prices. This lawsuit emerges amidst a tough housing market where many renters find themselves spending over 30% of their income on rent and utilities. The accused landlords, operating over 1.3 million units nationwide, allegedly shared sensitive data to avoid lowering rents, using algorithms to align their pricing strategies.

This lawsuit is part of a broader action against RealPage, an algorithm developer, which prosecutors claim facilitates anti-competitive practices by sharing sensitive rent information. One involved landlord has agreed to collaborate with authorities, adding prospects for more transparent rent setting practices. Greystar Real Estate Partners, a defendant, declared its adherence to integrity and denial of anti-competitive behavior in response to the allegations.

Acting Assistant Attorney General Doha Mekki said the lawsuit aims to end the practice of prioritizing profit over affordability, seeking to make housing accessible for millions. RealPage argues the blame for high housing costs should focus on housing shortages, emphasizing that their influence impacts less than 10% of US rental units. (This story was generated by Newser's AI chatbot. Source: the AP)