What's Happening?
Greystar, the largest private landlord in the United States, has reached a settlement with federal officials over allegations of price-fixing. The company, which manages approximately 950,000 units across the country, was accused of using RealPage software to collude with other landlords to increase rental prices. This software allowed landlords to share proprietary pricing data, leading to collective price hikes. The settlement prohibits Greystar from using this software, and the company has also settled a class-action lawsuit brought by renters. Greystar admitted no wrongdoing but agreed to cooperate with federal prosecutors in their ongoing investigation into RealPage.
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Why It's Important?
The settlement is significant as it addresses concerns about rental affordability and market competition. By curbing the use of RealPage software, the agreement aims to prevent artificial inflation of rental prices, potentially offering relief to renters facing high housing costs. The case highlights the importance of free-market competition in maintaining affordable housing. The outcome may influence other landlords and property management companies to reconsider similar practices, impacting the broader rental market and housing policies.
What's Next?
The settlement requires approval from a federal judge, and Greystar has agreed to external monitoring to ensure compliance. Additionally, the Federal Trade Commission and the state of Colorado have ongoing lawsuits against Greystar for misleading lease practices, which may soon be settled. Greystar has already implemented changes, including a new website and rent-pricing calculator, to improve transparency for prospective tenants.
