New Jersey AG Sues RealPage, 10 Landlords: Major Antitrust Violations Uncovered!

Attorney General Platkin condemned the defendants’ actions in a press release, stating, “This case involves defendants who unjustly enriched themselves at the cost of New Jersey renters, who found themselves burdened with exorbitantly high rents orchestrated by this group. We are acting today to hold them responsible for their illegal activities that have exacerbated the affordable housing issues in the state, denying many New Jerseyans their basic right to housing.”

A representative for RealPage expressed their disappointment over the Attorney General’s actions in a statement to HousingWire, suggesting that it was unfair to hold RealPage accountable for the broader housing affordability problems in New Jersey. The company pointed out that there had been no prior discussions before the lawsuit was filed.

The spokesperson further explained, “The design and operation of RealPage’s revenue management software are fully compliant with legal standards, utilizing data legally and responsibly. We have a proven track record of demonstrating this. Our software aids housing providers in adhering to various regulations including Fair Housing, rent control, and anti-price gouging laws during states of emergency, without relying on any personal or demographic data to suggest rent prices.

“We stand by the integrity of our services offered in New Jersey and across the country. The allegations by the New Jersey Attorney General are baseless and will not contribute to solving the housing affordability crisis. Instead of targeting technology that promotes competition, we urge state leaders to address the housing issue by increasing supply,” the statement concluded.

Platkin’s filing suggests that RealPage’s software enforces strict compliance with its price recommendations and includes tools to ensure landlords adhere to these suggested prices.

The software implicated in this legal battle is YieldStar, which relies on a mix of proprietary and publicly accessible data to help property managers set rental prices for apartment buildings, aiming to maximize their revenue.

The lawsuit explicitly criticizes the landlords involved, describing them as a cartel that not only participates in but actively recruits others to their pricing strategy. It is alleged that they utilized RealPage’s software to coordinate and set multifamily housing rents.

The property owners named in the lawsuit include Morgan Properties, Avalonbay, Kamson, Realty Operations Group, Lefrak Estates, Greystar Management, Aion Management, Cammeby’s Management, Veris Residential, Russo Property Management, Russo Development, and Bozzuto Management Company.

This is not the first government-led antitrust lawsuit against RealPage. In August, the Department of Justice (DOJ) filed a similar lawsuit alleging that YieldStar facilitated the setting of minimum prices based on non-public data. That case is still in progress.

RealPage first came under significant scrutiny following an October 2022 investigation by ProPublica, which revealed that landlords were using YieldStar to secretly monitor and match rental prices charged by their competitors, thus avoiding underpricing.

Subsequently, several class-action lawsuits have been launched against RealPage, including a notable one in 2023 by a group of Tennessee renters.

Additionally, since October, more lawsuits have been initiated against another RealPage service, Leasing Desk Screening, for allegedly inaccurately reporting that rental applicants had criminal records and other credit issues.

Editor’s note: This story has been updated to include comments from RealPage.