Landlords Using AI to Raise Rent
A growing reliance on RealPage, a software company using algorithms to set rental prices, is under scrutiny for inflating rents and potentially violating antitrust laws. Federal prosecutors allege RealPage’s technology facilitates unlawful price-fixing among landlords, harming renters by artificially raising costs. San Diego is drafting a ban on such software, following San Francisco’s precedent, with other cities and states considering similar measures.
RealPage’s software, including YieldStar and AI Revenue Management, pools private data from landlords to suggest rent prices. Critics, including federal and state officials, argue this fosters collusion, keeping prices high and exacerbating housing crises. An antitrust lawsuit filed by the Department of Justice and eight states accuses RealPage of monopolizing 80% of the rental pricing market and exploiting sensitive data to enrich landlords at renters’ expense.
San Diego’s council president likened the platform to a covert price-setting tool, while RealPage defends its technology as pro-competitive and blames high rents on housing shortages. Critics, including tenants like Navy veteran Alan Pickens, highlight the financial strain, with San Diego rents rising 21% since 2020 to an average of $2,336 per month, far above the national average.
Private equity ownership of RealPage, partially funded by California pension funds, has intensified criticism, with detractors accusing the company of profiting from tenant hardships. Legislators and renters continue to push for regulatory changes, as housing affordability worsens across California and beyond.