WASHINGTON – In a landmark move for renters across the D.C., Maryland, and Virginia (DMV) region, the nation’s largest landlord has agreed to stop using artificial intelligence software to set rental prices. The decision follows a settlement with the U.S. Department of Justice (DOJ), which accused the landlord of participating in AI-driven price fixing.
Who’s Involved?
The company at the center of the deal is Greystar, the country’s largest property management firm. Greystar manages nearly one million rental units nationwide, with thousands of properties located in the Washington, D.C., Maryland, and Virginia area.
Federal attorneys alleged that Greystar and other landlords used an AI tool created by RealPage, a Texas-based tech company, to collude on rental pricing. By pooling sensitive data, landlords allegedly coordinated rent increases, ultimately squeezing tenants with fewer affordable options.
How the AI Software Worked
RealPage’s software gave landlords access to detailed pricing data across markets, enabling them to align rent hikes instead of competing against one another.
- Landlords reportedly shared real-time pricing information through the software.
- The algorithm recommended higher rents across multiple properties simultaneously.
- In some cases, rental costs surged by 25% in just a single year for certain apartment complexes.
According to the D.C. Attorney General
60% of large apartment buildings in Washington, D.C., used RealPage software to set rents. In the broader metro area—Washington, Arlington, and Alexandria—the figure jumped to 90% of all units.
The Legal Case Against Greystar
The Justice Department accused Greystar of using AI as a tool to reduce competition and artificially inflate housing costs. While the company agreed to halt its use of the software, it did not admit wrongdoing…