DOJ Curbs AI's Real-Time Data to Combat Algorithmic Rent Hikes

A landmark antitrust settlement has curtailed the use of real-time data in rent-pricing algorithms by RealPage Inc., a Texas-based software company accused of enabling landlords to collude on pricing. The Department of Justice (DOJ) announced the deal on November 24, 2025, ending a yearlong lawsuit that alleged RealPage's software fostered "algorithmic collusion" by allowing landlords to push rents higher using confidential market data. The settlement, which requires judicial approval, bars RealPage from using current lease data to train its pricing models and restricts the use of nonpublic data from competing landlords when generating rent recommendations.

The DOJ accused RealPage of replacing market competition with coordination, arguing that its software's access to a vast trove of confidential data enabled landlords to charge above-market rents. "Rents should be set by the market, not by a secret algorithm," said Gail Slater, the DOJ's antitrust chief, who emphasized the settlement's aim to restore fair competition. RealPage, which denied wrongdoing, claimed its software historically used aggregated, anonymized data to lower rents and reduce vacancies. The company's attorney, Stephen Weissman, called the case an example of "misinformation" about its technology.

The settlement follows a wave of legal action against RealPage and its clients. Over the past months, more than two dozen property management companies, including Greystar-the nation's largest landlord- reached settlements. Greystar agreed to pay $50 million to resolve a class-action lawsuit and $7 million to settle a separate case involving nine states. Ten states, including California, New York, and Illinois, joined the DOJ's original lawsuit but were not part of the final settlement.

State and local governments have also moved to crack down on algorithmic rent-setting. California and New York enacted laws in October 2025 to restrict the practice, while cities like Philadelphia and Seattle passed ordinances banning the use of such software. These measures reflect growing concern over rising housing costs and the role of artificial intelligence in pricing. Former Vice President Kamala Harris had previously highlighted the issue during her 2024 presidential campaign.

The DOJ's case is one of the first major antitrust actions to center on algorithmic collusion, signaling a broader regulatory focus on AI's role in markets. RealPage's software, used by landlords nationwide, provided daily rent recommendations based on occupancy rates and market trends. Critics argued that the company's access to real-time data allowed it to subtly synchronize pricing across properties, effectively stifling competition.

While the settlement avoids a costly trial, it leaves unresolved questions about the future of AI in housing markets. RealPage's revised algorithms will now rely on data at least one year old, a change the company claims will still allow it to provide accurate pricing guidance. Meanwhile, advocates for affordable housing argue that the restrictions may not go far enough to address systemic issues in the rental market.

Though RealPage is not a publicly traded company, the regulatory actions against it have ripple effects in the real estate technology sector. Publicly traded companies like Zillow (ZG) and Redfin (RDNT) have faced similar scrutiny over their pricing tools and data privacy practices. The housing market's increasing reliance on algorithmic pricing means that the DOJ's actions may influence how investors view the risks and regulatory exposure of real estate technology firms.

The settlements and regulatory moves are reshaping the landscape for property management. While RealPage claims it can adapt its models to use historical data, some industry analysts predict that such constraints may reduce the precision of its recommendations, potentially leading to more volatile pricing and unpredictable tenant experiences.

As the legal and regulatory pressure mounts, the housing market is at a turning point. Whether this settlement will lead to more transparent and equitable pricing practices or simply shift the problem to new, less detectable methods of algorithmic coordination remains to be seen. For now, the DOJ's action marks a bold step into uncharted territory in the intersection of AI, antitrust law, and housing policy.