Democrats are increasingly targeting “price-fixing” rental software.
During her first major policy-focused speech as a presidential candidate this year, Vice President Kamala Harris vowed to crack down on algorithms and price-fixing software that inflate rents.
“I know how to fight for people who are being exploited in the housing market,” she said, referring to her time as Attorney General in California.
Coincidentally, Harris’ hometown San Francisco is poised to be the first city in the nation to pass legislation banning such software, and the issue has become a talking point in the mayoral election there. Lawmakers in New York and New Jersey have also floated similar legislation.
The issue became a hot topic after a ProPublica investigation, class action lawsuits against RealPage and an ongoing probe by the Department of Justice. At the center of this flurry of activity is the accusation that companies like RealPage and Yardi encourage landlords to inflate rents by providing recommendations for rental rates based on other landlords’ prices. These companies and others like them have pushed back on this notion, maintaining that rents are driven by several factors rather than some kind of cabal of landlords conspiring to artificially raise rents. Politico reported last month that the DOJ staff has recommended a civil lawsuit against the companies.
But what happens if the DOJ does not conclude that such software violates antitrust laws, or decides against bringing a civil action against these companies? However unlikely that outcome may be, what happens to these laws then? Will they face legal challenges before the DOJ actions or class actions are resolved? Seems like this could get complicated. If you have thoughts, please reach out!
What we’re thinking about: The new rules for the National Association of Realtors settlement go live tomorrow. How are you coping? What are watching for, in terms of short- and long-term ways this affects brokers? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: It looks like the vibrancy of the viral “pink house” in Hamilton, N.J., has been toned down. Pictures from the listing show a decidedly less pink upstairs. The listing price also dropped $20,000. Was it all a stunt? Did people not appreciate the palette? I must know!
Elsewhere in New York…
— Mayor Eric Adams and his campaign received subpoenas in July related to fundraising activity by his 2021 campaign, the New York Times reports. The subpoenas asked for text messages and other communications related to the mayor’s travel and other areas.
—A new report by the Independent Budget Office found that the city could save $42 million every other year if it held all local elections on even years, City & State reports.
— State officials plan to add the Atlantic leopard frog, a native of Staten Island, to its list of endangered and threatened species, Gothamist reports. The American eel, found in the Hudson River and Long Island, is also expected to be added to the list.
Closing Time
Residential: The priciest residential sale Wednesday was for $9.2 million at 20 East End Avenue. The Upper East Side condo unit is 4,700 square feet. The Corcoran Group’s Jennifer Reardon, Leighton Candler, Jodi Stasse, Julia Kay Goodman and Rachel Brandeis have the listing.
Commercial: The largest commercial sale of the day was for $8 million at 440 Broadway in Soho. In April, a foreclosure action tied to the property was filed against Thor Equities for $13.3 million. The 9,000 square-foot building has been a Foot Locker store since 2013.
New to the Market: The highest price for a residential property hitting the market was for $25.9 million at 235 West 11th Street in West Village. The townhouse stands at six stories and boasts nearly 6,000 square feet. Leslie J. Garfield’s Matthew Lesser, Matthew Pravda, Tori Landon and Michael Pinchasick have the listing.
Breaking Ground: The largest new building application filed was for a 133,799-square-foot building at 2952 West 28th Street in Brooklyn. Andrew Knox of ESKW/Architects was the applicant of record. – Joseph Jungermann