New Jersey sued the property administration software program firm RealPage, accusing it and 10 of the state’s largest landlords of conspiring to drive up residential rents, violating federal and state antitrust legal guidelines and New Jersey shopper fraud legal guidelines.
The criticism filed on Wednesday by state Legal professional Common Matthew Platkin stated the defendants, together with AvalonBay Communities AVB.N, illegally used RealPage’s income administration software program and algorithms to inflate rents for residences in multifamily properties.
New Jersey stated the defendants additionally quietly exchanged private information comparable to lease costs, facilities, concessions supplied, property values and housing stock, with the intention to align pricing and keep away from competitors to decrease rents.
The state stated the collusion has inflated rents for a whole lot of 1000’s of residents, with half of low-income renters paying greater than 30% of their gross incomes towards lease. Many actual property and monetary specialists suggest a 30% restrict.
US Justice Department Accuses RealPage of Driving Up Rents
“This lawsuit is about placing a cease to company greed at its worst,” stated Jeremy Hollander, performing director of New Jersey’s division of shopper affairs. “The housing market in New Jersey is already stacked in favor of landlords however the defendants wished extra.”
RealPage, primarily based in Richardson, Texas, has stated its pricing software program typically recommends decreasing rents as an alternative of elevating rents, and leaves resolution making to landlords.
A spokeswoman, Jennifer Bowcock, added that the software program is designed to adjust to housing legal guidelines.
“The claims introduced by the New Jersey legal professional basic are devoid of advantage and can do nothing to make housing extra reasonably priced,” Bowcock stated in an e-mail. “New Jersey ought to cease scapegoating pro-competitive know-how.”
AvalonBay, primarily based in Arlington, Virginia, didn’t instantly reply to requests for remark.
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The lawsuit seeks an injunction, civil penalties, the recouping of unlawful revenue and the appointment of a monitor to stop extra wrongdoing.
New Jersey sued eight months after the U.S. Division of Justice and eight different states additionally sued RealPage over its algorithms.
On April 2, RealPage sued the town of Berkeley, California, calling an ordinance towards utilizing algorithms to set rents an unconstitutional restriction on content-based speech, violating the First Modification.
The case is Platkin et al v RealPage Inc, U.S. District Courtroom, District of New Jersey, No. 25-03057.
(Reporting by Jonathan Stempel in New York; Modifying by Invoice Berkrot and Diane Craft)
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