SALEM, Ore. — Oregon's state attorney general said "at least two" neighborhoods have been affected by RealPage Inc., the real estate software platform currently subject of a federal antitrust lawsuit that accuses the company of an illegal scheme that allows landlords to coordinate to hike rental prices.
The lawsuit, filed in North Carolina, alleges the Texas-based company is violating antitrust laws through its algorithm that landlords use to get recommended rental prices for millions of apartments across the country. According to the lawsuit, the company is the biggest in the industry, controlling 80% of the housing and rental market.
Attorney General Ellen Rosenblum announced Friday that Oregon joined the multi-state federal suit, filed by the Department of Justice, along with Colorado, Connecticut, Minnesota, North Carolina, Tennessee and Washington.
“At a time when housing affordability is a top concern for Oregonians — and for countless Americans beyond our state’s borders — the issues of fairness and competition could not be more critical,” said Rosenblum in a statement.
“RealPage’s use of its AI pricing algorithm effectively acts as a hub for property managers and landlords to share confidential, competitively sensitive information and to engage in a pricing alignment scheme to avoid competition. It undermines a fair rental market and constitutes a violation of Oregon and federal antitrust laws (the Sherman Act),” she concluded.
Rosenblum added that the lawsuit named particular markets where more than 30% of landlords are using a RealPage subscription, including the Aloha/Beaverton and central Portland neighborhoods, which include around 54,000 units.
Portland renters advocate Margot Black hopes the lawsuit makes a difference for tenants.
"Even for smaller outfits who aren't subscribing to this algorithm or feeding it data, they see those list price rents, and they think, 'Oh, my gosh I've got to raise my rent,' so it trickles out even to the smaller landlords," said Black. "Having the government really look under the hood about the way those prices come down and the impact on the consumers, on the renters, on the families living in those homes is long overdue."
The complaint does not name property managers or owners as defendants and does not seek damages on behalf of tenants, she stated.
RealPage said in a statement it considered the Justice Department's claims "devoid of merit."
Associated Press contributed to the reporting of this story.