A Question of Fairness in the Age of AI-Driven Pricing

In August 2024, the Department of Justice filed a lawsuit against RealPage and then subsequently multiple large property management companies,  alleging that its algorithmic pricing system has harmed millions of American renters by facilitating anti-competitive practices. The suit claims that RealPage’s software allows landlords to coordinate rent prices, potentially leading to artificially inflated rates that are beyond what renters can reasonably afford.

This raises an important question: In an era where listings are online and AI tools are widely accessible, is it fair—or even ethical—to criminalize advanced market analysis?

Here at ReLISTO, we utilize analytical tools to evaluate the strength of a property’s pricing before we even schedule the first showing. These tools give us immediate and accurate insights into market interest, allowing us to assess the strength of our bargaining position if someone wishes to negotiate. It’s a modern, data-driven approach that replaces guesswork with informed decision-making.

Yet, we wonder: Could tools and strategies like ours also be impacted by this lawsuit? If so, would that hinder innovation and the ability to price properties efficiently and competitively?

For context, RealPage’s platform aggregates rental market data and uses it to recommend pricing strategies for landlords. Critics argue that this goes beyond simple market analysis, crossing into price-fixing territory when landlords collectively rely on the same data and recommendations. However, tools like Zillow also use AI to analyze market trends and offer property value estimates, both for buying and renting. These tools empower individual users—whether homeowners or landlords—to make informed decisions about pricing.

At ReLISTO, we believe everyone should have the opportunity and ability to find rental housing that fits their budget. That’s why we think it’s important to go back to the root of the problem: the lack of housing. Many communities resist the construction of new homes and apartments, particularly those that cater to a diverse range of needs and budgets. This resistance perpetuates the housing shortage, driving up costs and reducing options for renters.

If we encouraged the building of more homes and apartments of all sizes, we could alleviate this issue. An increased housing supply would naturally lead to more competitive pricing, reducing the need for landlords to rely so heavily on tools to maintain their market positions.

The RealPage case may set an important precedent for how AI-driven market tools are regulated. But while this debate unfolds, let’s not lose sight of the bigger picture. Tackling the housing crisis at its core—by increasing supply—could eliminate many of these concerns altogether.