Makers of Rent-Setting Software Sue California City Over Ban

Berkeley, California is "the latest city to try to block landlords from using algorithms when deciding rents," reports the Associated Press (noting that officials in many cities claim the practice is driving up the price of housing). But then real estate software company RealPage filed a federal lawsuit against Berkeley on Wednesday: Texas-based RealPage said Berkeley's ordinance, which goes into effect this month violates the company's free speech rights and is the result of an "intentional campaign of misinformation and often-repeated false claims" about its products. The U.S. Department of Justice sued Realpage in August under former President Joe Biden, saying its algorithm combines confidential information from each real estate management company in ways that enable landlords to align prices and avoid competition that would otherwise push down rents. That amounts to cartel-like illegal price collusion, prosecutors said. RealPage's clients include huge landlords who collectively oversee millions of units across the U.S. In the lawsuit, the DOJ pointed to RealPage executives' own words about how their product maximizes prices for landlords. One executive said, "There is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down." San Francisco, Philadelphia and Minneapolis have since passed ordinances restricting landlords from using rental algorithms. The DOJ case remains ongoing, as do lawsuits against RealPage brought by tenants and the attorneys general of Arizona and Washington, D.C... [On a conference call, RealPage attorney Stephen Weissman told reporters] RealPage officials were never given an opportunity to present their arguments to the Berkeley City Council before the ordinance was passed and said the company is considering legal action against other cities that have passed similar policies, including San Francisco. RealPage blames high rents not on the software they make, but on a lack of housing supply... Read more of this story at Slashdot.

Apr 5, 2025 - 23:49

Makers of Rent-Setting Software Sue California City Over Ban

Berkeley, California is "the latest city to try to block landlords from using algorithms when deciding rents," reports the Associated Press (noting that officials in many cities claim the practice is driving up the price of housing). But then real estate software company RealPage filed a federal lawsuit against Berkeley on Wednesday: Texas-based RealPage said Berkeley's ordinance, which goes into effect this month violates the company's free speech rights and is the result of an "intentional campaign of misinformation and often-repeated false claims" about its products. The U.S. Department of Justice sued Realpage in August under former President Joe Biden, saying its algorithm combines confidential information from each real estate management company in ways that enable landlords to align prices and avoid competition that would otherwise push down rents. That amounts to cartel-like illegal price collusion, prosecutors said. RealPage's clients include huge landlords who collectively oversee millions of units across the U.S. In the lawsuit, the DOJ pointed to RealPage executives' own words about how their product maximizes prices for landlords. One executive said, "There is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down." San Francisco, Philadelphia and Minneapolis have since passed ordinances restricting landlords from using rental algorithms. The DOJ case remains ongoing, as do lawsuits against RealPage brought by tenants and the attorneys general of Arizona and Washington, D.C... [On a conference call, RealPage attorney Stephen Weissman told reporters] RealPage officials were never given an opportunity to present their arguments to the Berkeley City Council before the ordinance was passed and said the company is considering legal action against other cities that have passed similar policies, including San Francisco. RealPage blames high rents not on the software they make, but on a lack of housing supply...