The Greystar DOJ Settlement and Its Implications for the Rental Property REIT Sector

The U.S. Department of Justice's (DOJ) recent settlement with Greystar Management Services—a cornerstone of the multifamily rental market—marks a pivotal moment in the regulatory scrutiny of algorithmic pricing tools. This case, alongside parallel actions against RealPage and other landlords, signals a paradigm shift in antitrust enforcement, with profound implications for the rental property REIT sector. Investors must now grapple with how these developments reshape risk profiles, valuation metrics, and strategic positioning in a market increasingly defined by regulatory intervention.

A Regulatory Shift: From Collusion to Compliance

The DOJ's allegations against Greystar and RealPage hinge on the misuse of algorithmic pricing tools to suppress competition. By leveraging shared data and coordinated pricing algorithms, landlords allegedly colluded to inflate rents, violating antitrust laws. The settlement imposes strict restrictions on Greystar's use of such tools, including bans on anticompetitive algorithms, data sharing, and participation in RealPage-hosted meetings. These measures are not isolated; they reflect a broader DOJ strategy to dismantle opaque pricing mechanisms in the rental market.

The implications extend beyond Greystar. RealPage, which dominates over 90% of the multifamily revenue management software market, now faces a civil lawsuit and 30+ class-action lawsuits. Its stock has underperformed the S&P 500 by 35% year-to-date, a stark indicator of market reassessment.

Market Concentration and Systemic Risk

The settlement underscores the sector's overreliance on a handful of technology platforms. RealPage's algorithmic tools influence rents for over 4.5 million U.S. units, creating a concentrated risk where regulatory missteps by one vendor can ripple across the industry. For REITs, this concentration amplifies exposure to legal and reputational fallout.

Consider the financial toll: RealPage's parent company, Thoma Bravo, faces asset devaluation as demand for its tools wanes. Green Street Advisors projects a 15–20% contraction in the multifamily revenue management software market by 2026.

Valuation Pressures and Strategic Rebalancing

The regulatory crackdown is already reshaping REIT valuations. REITs with heavy RealPage exposure face elevated compliance costs, litigation risks, and operational disruptions. For instance, Greystar's $1.35 million FTC settlement for deceptive pricing practices—unrelated to algorithmic collusion—highlights the sector's regulatory fragility.

Investors should also consider the cost of compliance. The DOJ's consent decrees require landlords to adopt transparent pricing strategies, potentially increasing operational expenses. For REITs, this could erode profit margins and reduce pricing flexibility, key drivers of rental income growth.

Investment Strategy: Diversification and Due Diligence

Given these risks, a strategic rebalancing of rental property portfolios is prudent. REITs with diversified technology stacks—those integrating human oversight with algorithmic tools—may offer a buffer against regulatory shocks. Conversely, those with concentrated RealPage exposure warrant caution.

Legislative trends further complicate the landscape. The Preventing Algorithmic Collusion Act, introduced by Senator Amy Klobuchar, seeks to redefine antitrust law by presuming price-fixing when competitors share nonpublic data via algorithms. With 51 algorithmic pricing bills introduced in 24 states in 2025 alone, the regulatory environment is unlikely to stabilize soon.

Conclusion: Navigating the New Normal

The Greystar settlement is a harbinger of stricter antitrust enforcement in the rental sector. While the DOJ's actions aim to restore competitive dynamics, they also introduce volatility for REITs reliant on algorithmic pricing. Investors must prioritize transparency, compliance readiness, and diversification to mitigate risks.

For now, the sector stands at a crossroads. REITs that adapt swiftly—by adopting compliant pricing models or partnering with less controversial platforms—may emerge stronger. Others, however, risk obsolescence in a market where regulatory scrutiny is no longer a distant threat but an immediate reality.

In this evolving landscape, patience and prudence are virtues. The rental property REIT sector's future will be defined not by the tools it uses, but by its ability to align with the regulatory and ethical imperatives of the 21st century.