The AI tool, 'AI Revenue Management,' significantly inflates rental prices, allowing landlords to collude indirectly, leading to an estimated annual increase of over $3.8 billion in rents.
The CEA report highlights that nearly 25% of multifamily rental properties use RealPage’s pricing algorithm. In cities like Atlanta, this number exceeds 50%, showing how widespread the issue is.
The RealPage AI effectively coordinates higher rental prices among landlords, acting like a price-fixing cartel and undermining fair competition in the housing market.
The Department of Justice argues that this practice violates the Sherman Act as it leads to anti-competitive behavior and artificially higher costs for renters.
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