Many have accepted that RealPage's price optimization algorithm is responsible for raising rents, but significant legal challenges against the company remain.

The legal battle surrounding RealPage, the rental housing software provider, has become one of the most closely watched stories in the multifamily industry. At the heart of the controversy is a lawsuit filed by the Department of Justice and eight states, accusing RealPage of facilitating illegal price-fixing through its algorithmic pricing tools. While the case has sparked widespread concern, especially regarding how pricing algorithms could be regulated in the future, legal experts are divided on whether the DOJ’s arguments will hold up in court.

Some experts warn that the DOJ's case could set a dangerous precedent, lowering the bar for proving price-fixing in industries that rely on algorithmic pricing. If the government prevails, it could drastically change how AI and competitive data are used in real estate, and beyond. But, others believe the case is built on shaky ground, particularly given the lack of direct evidence of collusion between property managers using the software. The real question is whether the DOJ can prove that these actions amount to illegal price-fixing under antitrust laws.

As the lawsuits unfold, the future of RealPage’s software—and the use of similar revenue management tools—hangs in the balance. With some multifamily firms already distancing themselves from the platform, RealPage has introduced new features aimed at addressing concerns around non-public data sharing. Still, with cities like San Francisco and Philadelphia banning such software, it’s clear that the broader regulatory environment is shifting.

The ultimate outcome of the RealPage case could reshape the entire landscape of algorithmic pricing. Whether it ends in a settlement, a landmark court ruling, or a wave of local and state bans, one thing is certain: the multifamily industry, and other sectors using AI to set prices, will be watching closely. This legal saga may very well determine how—and whether—pricing algorithms can continue to thrive in an increasingly cautious regulatory environment.

Explore the full story about why the case against RealPage may be weaker than some think in today’s featured article. This article is free to read for the next 24 hours. Not a subscriber? This week only, get unlimited access to all our exclusive content for just $25 for one year with code CYBERMONDAY. Save $165—our best offer ever! Sign up now!

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