Summary
The U.S. Justice Department, joined by 10 states, has sued six major landlords and RealPage, a company behind a rent-setting algorithm, accusing them of colluding to keep rents high by sharing sensitive pricing data and avoiding competition.
The landlords, operating over 1.3 million units, allegedly used RealPage’s algorithm and coordination to align rents, exacerbating the housing crisis.
One landlord has agreed to cooperate with prosecutors.
Critics argue this scheme worsens affordability issues for renters, who already face record rent burdens amid a strained housing market.
What we need is monthly fines for unfilled units, which are proportional to the rate being charged for the unit.
The problem twofold. First, property has been skyrocketing in value lately. You can practically buy an apartment and sit on it empty for a few years and flip it for a profit. There is very little pressure to actually fill a unit. Second, there is no mechanism to drive prices down.
We need to build a system that allows the price to rise with inflation, but also to fall with availability and demand.
Fine landlords for unfilled units. The fine is a proportion of their highest advertised rate for that unit. Now they have an incentive to fill that unit, make deals, and lower the price. The fines they pay go directly to subsidizing rent payments for low income renters, now they have extra buying power to get an apartment and off the street. We need to build systems that self balance/regulate.