What's Happening?
Oregon, along with eight other states, has proposed a $7 million settlement with Greystar Management Services, the largest landlord in the U.S., to stop using algorithmic software that artificially inflates rent prices. Greystar manages nearly 950,000
rental units across the country, including almost 19,000 in Portland. The settlement, if approved by the U.S. District Court for the Middle District of North Carolina, would prevent Greystar from using rent-setting algorithms from RealPage, a Texas-based software company, and sharing sensitive data with other landlords. The settlement aims to hold Greystar accountable for price-fixing practices that have increased rent costs for working families.
Why It's Important?
The proposed settlement is significant as it addresses the issue of algorithmic price-fixing in the rental market, which has contributed to rising housing costs. By curbing these practices, the settlement could lead to more affordable housing options for renters, particularly in states like Oregon where housing costs are high. The case highlights the broader impact of technology on housing affordability and the need for regulatory oversight to protect consumers from exploitative practices. The outcome of this settlement could set a precedent for other states to follow, potentially leading to more widespread reforms in the rental market.
What's Next?
If the settlement is approved, Greystar will avoid going to trial and will not admit wrongdoing. The company will be required to stop using algorithmic rent-setting software and refrain from sharing sensitive data with other landlords. The $7 million settlement will be paid to the state of California and distributed among the plaintiff states. The Portland City Council has also voted to ban algorithmic price fixing, indicating a growing trend towards regulating rent-setting practices. This could lead to further legislative actions aimed at ensuring fair rental practices and protecting tenants from unjustified rent increases.
