Real estate company helped to artificially inflate rents across America, Justice Department alleges

The Justice Department has filed a civil lawsuit against a real estate company, alleging that its software manipulates rental prices by suppressing competition. The Texas-based company’s algorithm uses private landlord data to suggest pricing recommendations, compromising the competitive process. Attorney General Merrick Garland expressed concern that the software allows landlords to share confidential information and align their rental prices. The software uses non-public data to determine competitor prices and maximize rental income. The complaint highlights the rise of corporate landlords and their potential for abuse in eviction cases. The software has a monopoly on rental management software and is used in managing 3 million rental units, predominantly in Southern states.