Ten landlords in New Jersey accused of colluding to increase rental prices, according to authorities.
Ten landlords in New Jersey have been accused of engaging in collusive practices with the software company RealPage to artificially inflate rental prices statewide, according to authorities. The New Jersey Attorney General, Matthew Platkin, announced the allegations on Wednesday, emphasizing that the actions of these landlords and the software firm victimized tenants struggling with rising housing costs.
RealPage, a technology firm specializing in property management solutions, has been under scrutiny for its controversial software that reportedly allows landlords to access sensitive market data to benchmark rental rates against one another. The company has faced numerous lawsuits from various states as well as the U.S. Department of Justice for its alleged role in facilitating anti-competitive behavior within the rental market.
The ten corporate landlords implicated in the antitrust lawsuit include notable names such as Morgan Properties Management Company, AvalonBay Communities, Kamson Corp., LeFrak Estates and its subsidiary Realty Operations Group, Greystar Management Services, Aion Management, Cammeby’s Management Co. of New Jersey, Veris Residential, Russo Property Management, and Bozzuto Management Company. These landlords collectively command a significant presence in New Jersey’s rental market, managing tens of thousands of properties across the state.
The lawsuit alleges that the collaboration between RealPage and these landlords resulted in an unlawful scheme that placed undue financial burdens on New Jersey renters. Platkin’s statement underscored the detrimental impact of this cartel-like arrangement, which has purportedly driven rents to “unlivable price levels,” exacerbating the housing crisis facing many residents.
Despite the mounting legal challenges and public outcry, RealPage continues to deny any wrongdoing, asserting that its software does not facilitate collusion among landlords. However, executives at the company previously indicated in 2022 that their technology was producing unprecedented rental rate increases, raising concerns about its influence on pricing practices in the rental market.
As the federal case against RealPage unfolds, uncertainties remain regarding the enforcement of antitrust regulations under the current administration. While the Biden administration had been perceived as favoring aggressive antitrust measures, recent shifts within the Justice Department under the Trump administration have led to speculation about the future trajectory of such legal actions. The implications of this lawsuit extend beyond New Jersey, potentially inspiring similar scrutiny in other regions grappling with rising housing costs and affordability challenges.
