In response to a federal antitrust lawsuit against RealPage Inc., Oregon's state attorney general, Ellen Rosenblum, announced that "at least two" neighborhoods in the state have been affected by the alleged illegal scheme that allows landlords to coordinate rental price hikes. The lawsuit, filed in North Carolina, accuses the Texas-based real estate software platform of violating antitrust laws through its algorithm that provides recommended rental prices for millions of apartments across the country.

According to the lawsuit, RealPage holds a significant share of the industry, controlling 80% of the housing and rental market. The attorney general highlighted the criticality of fairness and competition amidst concerns over housing affordability, stating that RealPage's AI pricing algorithm acts as a hub for property managers and landlords to share confidential and competitively sensitive information, ultimately undermining a fair rental market. This, in turn, constitutes a violation of both Oregon and federal antitrust laws, including the Sherman Act.

Oregon has joined forces with Colorado, Connecticut, Minnesota, North Carolina, Tennessee, and Washington in the multi-state lawsuit, filed by the Department of Justice. Attorney General Rosenblum emphasized the urgent need to address these issues, given their impact not only on Oregonians but also on countless Americans across the nation.

Rosenblum further revealed that the lawsuit specifically named the Aloha/Beaverton and central Portland neighborhoods as markets where over 30% of landlords are using a RealPage subscription. These neighborhoods alone consist of approximately 54,000 units.

Margot Black, a Portland renters advocate, expressed her hopes that the lawsuit would bring about significant changes for tenants, stressing the trickle-down effect it has on smaller landlords who may feel pressured to raise their rents upon seeing the list price rents generated by RealPage's algorithm. Black emphasized the need for the government to thoroughly investigate the impact of these pricing practices on consumers and families residing in rental homes.

It is important to note that the complaint does not name property managers or owners as defendants, nor does it seek damages on behalf of tenants. RealPage Inc. responded to the claims made by the Justice Department, stating that it considers them "devoid of merit."

As this legal battle unfolds, the outcome may have significant implications for the housing and rental market, not only in Oregon but across the United States.