Greystar Settling DOJ Rent Algorithm Probe

The Justice Department reached a proposed settlement with Greystar, the country’s largest landlord, over what prosecutors say was an industry-wide scheme to coordinate apartment rents through algorithmic pricing.

The deal, filed Friday in federal court in North Carolina, would bar Greystar from using any rent-setting algorithm built on competitors’ proprietary data or designed with anti-competitive features, according to the Justice Department.

The landlord would also be prohibited from sharing competitively sensitive information with rivals or attending RealPage-hosted landlord meetings, and could face court-appointed oversight if it adopts uncertified third-party pricing tools.

Federal antitrust lawyers allege the South Carolina-based firm joined five other landlords in feeding sensitive data — including rents, occupancy rates and pricing strategies — into RealPage’s software, which generated rent recommendations embedded with “anticompetitive rules” designed to align rates among competitors. The complaint also claims the companies swapped pricing parameters and other strategic details in direct conversations.

Greystar manages nearly 950,000 units nationwide.

“Whether in a smoke-filled room or through an algorithm, competitors cannot share competitively sensitive information or align prices to the detriment of American consumers,” Assistant Attorney General Abigail Slater said in a statement.

Attorney General Pamela Bondi cast the case as part of the Trump administration’s broader push for “making housing affordable again.”

“We entered into these settlements to make clear the government’s interpretation of the law and to ensure we continue to do things the right way,” Greystar said in a statement to Bisnow.

The proposed consent decree stops short of extracting monetary penalties but would compel Greystar to cooperate in the government’s ongoing monopolization claims against RealPage.

The case is one front in the DOJ’s widening crackdown on algorithmic coordination in housing, a practice regulators say has surged alongside the adoption of AI-powered property management tools.

RealPage, which provides rent-optimization products, has been under scrutiny since reports alleged its software helped landlords collectively push rents higher, particularly in tight Sun Belt markets.

Lawsuits and litigation focused on rent-setting software have been ramping up. Cortland already signed a consent decree in the wider investigation of RealPage, while on the local level, D.C. Attorney General Brian Schwalb settled with landlord W.C. Smith, which owns more than 9,000 multifamily units in the metropolitan area and was facing similar allegations to other landlords.