- The DOJ’s settlement with RealPage sets limits on how the company can collect and use data in its AI rent recommendation software but stops short of banning algorithmic pricing tools.
- RealPage can continue to use public data and property-specific information, but is restricted from using sensitive, nonpublic data from competitors in daily rent recommendations.
- While industry leaders see the settlement as reinforcing existing antitrust norms, tenant advocates criticize it as too lenient, potentially allowing continued price coordination.
- The deal could set a precedent for ongoing state-level litigation, which may impose financial penalties and further restrictions on RealPage and similar technologies.
A Quiet Reset, Not A Reckoning
The Department of Justice’s antitrust case against RealPage, filed in August 2024, sparked concern across the multifamily sector. The lawsuit questioned the legality of algorithmic rent-setting tools used at millions of apartment units. More than a year later, the federal government and RealPage have reached a settlement, reports Bisnow. The deal reins in certain practices without dismantling the software at the heart of the controversy.
The consent decree, pending final approval from a North Carolina judge, introduces specific guardrails for RealPage’s AI-powered pricing engine. It focuses primarily on the types of data the software can use. It also outlines how that data must be collected.
What’s Changing?
The settlement restricts RealPage from using nonpublic, sensitive data such as occupancy or renewal rates from competing properties. RealPage’s software must now use public data, internal property info, or landlord portfolio data to generate daily rent recommendations.
Model training data is subject to lighter restrictions: it must be at least one year old and from inactive leases but doesn’t fall under the same public/private data rules.
Crucially, landlords can still input data about competing properties into the system, but RealPage is prohibited from encouraging them to do so — a key antitrust distinction.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Industry Response: It’s Business As Usual
Many legal and industry experts describe the settlement as a clarification of existing antitrust rules rather than a sea change. RealPage claims it was already operating in line with most of the consent decree’s terms. Legal experts like Reed Smith’s Michelle Mantine note the settlement simply applies longstanding information-sharing norms to new technology.
“This is a reemphasis, not a rewrite,” said Mantine.
Industry voices argue that the DOJ’s focus on rent algorithms distracts from the real issue: a chronic housing shortage. Kevin Donnelly of the Real Estate Technology & Transformation Center (RETTC) said the deal “misses the bigger picture” and defends rent-setting tech as a valuable efficiency tool.
Pushback From Tenant Advocates
While the multifamily industry largely sees the settlement as a reasonable outcome, tenant advocacy groups are frustrated. They argue RealPage’s software facilitated a form of “price collusion” under the guise of algorithmic objectivity, inflating rents in markets already struggling with affordability.
“The settlement feels like a slap on the wrist,” said K Agbebiyi of the Private Equity Stakeholder Project, which points to an estimated $4B in inflated rents in 2023 alone.
RealPage, backed by private equity firm Thoma Bravo, has not been required to pay penalties under the federal settlement — though states may still pursue financial damages.
What’s Next?
The DOJ’s deal could act as a template for similar state-level cases still in progress. Nine states that joined the original lawsuit haven’t yet settled, and class-action suits are still working their way through the courts. While this federal agreement won’t resolve those cases, it may shape their terms — potentially with added monetary components.
In the meantime, RETTC and others are pushing for industry-led frameworks around AI transparency and governance. A new AI Governance Framework released by RETTC emphasizes accountability and affordability, though Donnelly declined to name any tools currently meeting all its standards.
The Bottom Line
The RealPage settlement marks a significant, though measured, moment in the intersection of AI and real estate. Rather than eliminating algorithmic rent-setting, the DOJ is placing boundaries around its use — a move that may allow innovation to continue while avoiding outright price coordination.
Still, as technology becomes more embedded in multifamily operations, expect regulators, states, and class-action litigants to keep the pressure on, especially where housing affordability remains a central concern.
