Largest U.S. Landlord Reaches $7 Million Deal With States Over Rent-setting Software

Benzinga

Greystar agreed to a $7 million settlement with nine states over its use of RealPage-linked rent-setting software that prosecutors said helped landlords align prices during a national affordability crisis. The company will stop using tools that rely on competitors’ confidential data and has separately reached a $50M class-action deal and a nonmonetary DOJ agreement. RealPage denies wrongdoing, saying low housing supply—not algorithms—drives rising rents as states begin targeting rent-pricing software.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Graystar reached a $7 million settlement when nine states had sued the company for using

00:06rent-setting software tied to RealPage, according to the AP.

00:10Prosecutors said the tools enabled rival landlords to align prices

00:12and lift rents during a national affordability crisis.

00:16The settlement requires Graystar to stop using software that draws on other landlords' confidential data.

00:21Graystar separately agreed to a $50 million class-action settlement last month

00:24and reached a non-monetary deal with the DOJ in August.

00:27RealPage said its pricing tool is used on fewer than 10% of U.S. rentals and denied wrongdoing,

00:33arguing that low housing supply, not algorithms, drives high rents.

00:36California and New York recently signed laws targeting rent-setting software,

00:40and more cities are passing similar restrictions.

00:42For all things money, visit Benzinga.com.

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