Greystar Real Estate Partners has reached a tentative settlement with the U.S. Department of Justice in a lawsuit alleging that the company took part in a scheme to push up rental prices across the country. The case focuses on the use of popular industry software that reportedly helped landlords coordinate rent increases.
Under the agreement, Greystar will no longer create pricing suggestions based on algorithms that use sensitive data shared by competitors. The company is also barred from exchanging competitive information with other landlords. Additionally, Greystar has agreed to help the government in its ongoing investigation and case against RealPage Inc., a software and data company accused of enabling this price-fixing practice.
The Department of Justice filed the lawsuit against RealPage a year ago, accusing it of helping landlords boost rents unfairly through its revenue management software. Later, the DOJ expanded the case to include Greystar and other major industry players like Cushman & Wakefield, Camden Property Trust, and LivCor, which is part of Blackstone Inc. Cortland Management LLC had already settled earlier.
Greystar insists that it followed all laws in using RealPage’s software and says it does not admit any wrongdoing as part of this settlement. This lawsuit marks the DOJ’s first major move against algorithm-driven collusion, highlighting new challenges as companies use advanced technology to influence market prices.
The DOJ’s antitrust chief, Gail Slater, emphasized that no matter the method—whether secret meetings or software algorithms—competitors cannot share sensitive data or work together to raise prices, as it hurts consumers.
The settlement still needs approval from the courts. Meanwhile, RealPage and the other companies involved are pushing to have the lawsuit dismissed. This case could set important rules for how technology is used in the rental market going forward.