A Major Shift in Rental Pricing Technology Is Here

Investors across the U.S. are keeping a close eye on a significant development:
The Department of Justice has reached a settlement with RealPage Inc., one of the nation’s largest rent-pricing software providers, following allegations of “algorithmic collusion.”

The concern?
That rent-setting technology was quietly coordinating pricing among property managers using nonpublic rental data, potentially driving rents higher and reducing real competition.

As of this week, major restrictions have been placed on how RealPage can use data moving forward,  a shift that could influence rental pricing strategies, market competition, and investor decision-making nationwide.

Let’s break down the essentials.

🔍 What Was RealPage Accused Of?

RealPage provides software that landlords and property managers use to price rental units. The DOJ alleged that:

• The software used confidential, real-time rental data from multiple landlords

• Pricing recommendations may have reduced competition between properties

• Properties using the platform could have been raising prices in parallel,  unintentionally or otherwise

• Renters may have paid artificially increased rents as a result

RealPage disputes the claims and admits no wrongdoing, but agreed to settle the government’s lawsuit.

⚖️ What the Settlement Does

The DOJ settlement introduces major changes:

1. No more real-time private data

RealPage is prohibited from using current, nonpublic rental data to generate pricing recommendations.

2. Only “older” data allowed

Any nonpublic data used to train algorithms must be at least one year old.

3. Aimed at restoring market competition

The DOJ states that the goal is transparent, competitive pricing, not algorithm-driven coordination.

4. No fines or damages for RealPage

The agreement avoids trial and financial penalties, although other cases against property management companies have resulted in large settlements.

🏘️ How This Affects Investors & Property Owners

Even if you do not use RealPage software, this settlement shifts broader market dynamics.

Here’s what investors should keep in mind:

1. Rent Growth May Normalize in Some Markets

If certain markets saw faster rent increases due to algorithmic pricing, this ruling may slow or stabilize rental growth, especially in dense, multifamily-heavy areas.

For investors, that means:

• More predictable market fundamentals

• Less artificial volatility

• Clearer long-term revenue planning

2. Competitive Pricing May Return in Tight Markets

Without algorithm-driven coordination, rental pricing may once again depend more heavily on:

• Local supply and demand

• Market comps

• Unit condition and amenities

• Marketing strategy

• Property management efficiency

This may create opportunities for sharper operators who excel at occupancy, service, and marketing.

3. Increased Scrutiny of Pricing Tools

Other rent-pricing platforms may face added attention, or pre-emptively change how their algorithms work.

As an investor, this means:

• Review the software your property manager uses

• Understand how rents are set

• Ensure compliance with evolving rules

4. Regional Regulations Will Likely Expand

States including:

• California

• New York

• Tennessee

• Oregon

• Colorado

• Illinois

• and others

have already introduced or are reviewing legislation targeting algorithmic rent-setting.

Expect more states or cities to follow.

5. Portfolio Strategy Might Shift

If you invest in:

• Multifamily properties

• Build-to-rent communities

• Urban rental corridors

you may see more noticeable price-setting changes than single-family landlords or short-term rental owners.

Portfolio owners should:

• Reassess rent growth assumptions

• Review pro forma projections for 2026–2028

• Prepare for potentially slower but healthier organic growth

🧠 Expert Perspective: Is This Good or Bad for Investors?

Overall, this settlement is neutral to positive for most investors.

Why?

✔ It reduces the risk of pricing distortions
✔ It improves long-term market stability
✔ It protects you from potential regulatory backlash
✔ It brings rental pricing back to fundamentals
✔ It enables strong operators to outperform weaker ones

Markets function best with transparent, competitive pricing and that stability supports long-term property values.

💼 What Investors Should Do Now

1. Audit Your Property Management Company

Ask them how rents are priced and whether any algorithmic tool is being used.

2. Update Your Rental Projections

Expect more balanced, organic rent growth in some metros.

3. Watch for Regional Legislation

Some states will continue pursuing legal action independently of the DOJ settlement.

4. Stay Educated & Adjust Strategy

Smart operators will pivot quicker than the market. Information is leverage.

📞 Have Questions About the Market? Let’s Talk.

Michelle Baydemir
Broker-Owner • Florida Vacation Home & Investment Property Specialist
📧 [email protected]
📞 321-333-1338
🌐 www.vacayreflorida.com