### DOJ Broadens RealPage Antitrust Lawsuit: Six Landlords Identified, Cortland Reaches Settlement
The U.S. Department of Justice (DOJ) has escalated its antitrust inquiry into the rental housing sector by initiating a lawsuit against six prominent landlords accused of collusion via algorithmic pricing software to drive up rents. This legal action builds upon earlier litigation against RealPage, a software firm pivotal to the controversy, now citing landlords Greystar, LivCor, Camden, Cushman, Willow Bridge, and Cortland as defendants. Collectively, these entities oversee more than 1.3 million rental units across 43 states and the District of Columbia.
### The Accusations: Algorithmic Price Manipulation
The DOJ claims that these landlords utilized RealPage’s pricing algorithms to exchange sensitive, confidential information and jointly determine rental prices, thereby diminishing competition within the market. The amended complaint indicates that the landlords were involved in “a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms.”
The lawsuit points to examples where landlords deliberated on pricing tactics and the implementation of RealPage software in user groups and direct communications. For instance, property managers reportedly participated in “call arounds,” sharing details on rents, occupancy levels, and discount offers. In one exchange referenced by the DOJ, a property manager disregarded worries regarding “price fixing laws,” reflecting a nonchalant perspective towards possible legal issues.
### Cortland’s Agreement and Assistance
Cortland Management, one of the six landlords named in the lawsuit, has consented to a settlement with the DOJ. Under the terms of the settlement, Cortland will discontinue using competitors’ confidential information to establish rents and will halt the use of identical pricing algorithms as its competitors. Additionally, the company must fully cooperate with the DOJ in its ongoing inquiry and any related legal actions.
Cortland released a statement expressing relief that the DOJ has concluded its criminal probe into the company, which included an FBI raid on its Atlanta office in May 2024. The firm underscored that it has created proprietary revenue management software that does not depend on external, confidential data, positioning itself as a compliant participant moving forward.
### RealPage’s Involvement and Defense
RealPage, the software company implicated in facilitating the purported price-fixing conspiracy, remains a key player in the DOJ’s case. The firm has refuted the allegations, contending that its software merely offers pricing suggestions based on market variations and that landlords are free to accept or disregard these recommendations.
In December 2022, the National Multifamily Housing Council, a trade organization representing rental firms, also defended the sector, asserting that the fragmented nature of the rental market promotes competition rather than collusion. However, the DOJ’s lawsuit presents a contrasting narrative, alleging that RealPage’s software and user groups established a platform for landlords to synchronize pricing strategies.
### Wider Consequences for the Rental Sector
The DOJ’s lawsuit carries substantial ramifications for the rental housing market, especially in a time when technology increasingly shapes pricing decisions. The case prompts inquiries into the ethical and legal limits of using algorithmic tools within competitive arenas. Critics assert that when misused, such tools can worsen housing affordability challenges by artificially elevating rents.
The DOJ’s case gains strength from the involvement of attorneys general from ten states, including California, Colorado, and Massachusetts, signaling a wide coalition opposing alleged anticompetitive behaviors in the rental market. The lawsuit is currently being adjudicated in the U.S. District Court for the Middle District of North Carolina.
### Industry Resistance and Upcoming Developments
Greystar, one of the landlords named in the lawsuit, has pledged to “vigorously” defend itself, asserting that it has always operated its business with integrity and has not participated in anticompetitive behavior. Other landlords are anticipated to deliver similar defenses, setting the groundwork for a contentious legal dispute.
As the case progresses, it will likely serve as a benchmark for how antitrust regulations are applied to algorithmic pricing and data-sharing practices within the housing field. The verdict could have extensive implications, not only for the defendants but also for broader applications of technology in real estate and other sectors.
### Conclusion
The DOJ’s expanded lawsuit against RealPage and six significant landlords emphasizes the increasing scrutiny of algorithmic pricing tools and their effects on market competition. While Cortland’s settlement signifies a notable development, the case against the remaining defendants and RealPage is far from finished. As legal proceedings advance, attention will remain on the intersection of technology, competition, and housing affordability—a pivotal issue for millions of renters across the United States.
