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Landlord Collusion?? Here Comes The Gavel

Landlord Collusion?? Here Comes The Gavel

The Department of Justice has opened up an investigation against Realpage rental software for price collusion.

Conner Burton
November 27, 2022

What's up Calculated Investors.

The Department of Justice has opened up an investigation into RealPage, a software company that analyzes and shares rental data. Landlords can also receive "rent recommendations" in various areas across the country.

RealPage's problem? It worked a little too well. All of the landlords on the platform coordinated price setpoints and boosted rents above "natural" levels.

The coordination of rent pricing between landlords violates federal anti-trust laws.

Whoops.

RealPage is of course denying wrong doing and declining to comment. It will be interesting to see how this plays out in the courts.

I'm also wondering how this impacts the future of "rent recommendation software." Algorithms are going to improve. Data will become more prevalent and easier to obtain.

Are machines one day going to set rent prices? Or should there always be a human element? Future us has a lot of thinking to do...

Fed minutes came out from November's meeting. There are several hints leaning towards a 0.50% rate hike for December. If that were to happen, we can finally celebrate and shout to the heavens, "rate hikes are slowing"

Reminds me of all the article headlines over the past few months:

"Rent growth is slowing"
"Slowed rent growth increasing across the country"
"Increased demand for slowed growth across most of the Southeast Sunbelt"

It's enough to make your head spin.

Let's get into it. 💲🏠💲

Calculated Market

Fed minutes make case for likely higher rate hikes in December meeting (FORBES)
Justice Department opens investigation into RealPage rent software (REALDEAL)
Average American needs to work 63 hours a week to afford rent (ZILLOW)
Fannie still says economy expected to enter (and exit) moderate recession in 23' (FANNIE)
Redfin reports home sales fell 30% in Q3, largest drop since Great Depression (GLOBE)
Apartment conversions are outpacing new construction (RENTCAFE)
Cities where tenants pay highest percentage of income to rent (GLOBE)
How to create a "Disaster Recovery Plan" for your properties (BESTEVER)
The road to "net zero" energy usage for commercial properties varies by city (CBRE)
Proof inflation has finally peaked (BP)
Work from home? Happiest renters are in the Southeast (RENTCAFE)
CRE roles potentially on the chopping block as firms look to cut costs (BISNOW)
Investors eye shift to preferred equity options to limit risk (WEALTH)
The world's largest 100 pension funds (VISUAL)
Construction struggles to push out multifamily new deliveries at alarming rate (REALPAGE)