NJ Sues RealPage, Landlords Over Rent Collusion

The state of New Jersey has filed a sweeping lawsuit against RealPage, a Texas-based property management software firm, and 10 of the state’s largest landlords, accusing them of conspiring to artificially inflate rents across multifamily residential properties.

According to Reuters, the lawsuit—filed by New Jersey Attorney General Matthew Platkin—alleges that RealPage and major real estate players like AvalonBay Communities used sophisticated revenue management tools to manipulate rental prices. The complaint argues that these practices violated both federal and state antitrust laws, as well as New Jersey’s consumer fraud statutes.

Per Reuters, the state’s legal filing contends that RealPage’s algorithm-driven software enabled the defendants to coordinate rent increases by sharing non-public data, including lease pricing, amenities, incentives, and housing availability. This coordination, the state claims, helped limit market competition and kept rents elevated—burdening tenants with costs that far exceed recommended affordability thresholds.

State officials point to widespread consequences for renters, particularly low-income households. The complaint notes that nearly half of those renters are spending more than 30% of their gross income on housing—a threshold that financial experts widely caution against exceeding.

“This lawsuit is about putting a stop to corporate greed at its worst,” said Jeremy Hollander, acting director of the New Jersey Division of Consumer Affairs. “The housing market in New Jersey is already stacked in favor of landlords but the defendants wanted more.”

RealPage, headquartered in Richardson, Texas, did not immediately respond to media inquiries. The company has previously stated that its pricing tool is intended to provide rent suggestions, including potential decreases, while final pricing decisions remain with landlords.

AvalonBay Communities, one of the major landlords named in the lawsuit and based in Arlington, Virginia, also declined to issue an immediate comment.

The state is seeking a range of remedies, including a permanent injunction to halt the alleged practices, civil penalties, restitution of unlawfully obtained profits, and the appointment of an independent monitor to ensure compliance moving forward.

This legal action in New Jersey follows a broader federal crackdown. As Reuters previously reported, the U.S. Department of Justice and eight other states launched a similar antitrust lawsuit against RealPage in 2023, raising concerns over the influence of algorithmic tools on rental markets nationwide.

Earlier this month, RealPage responded to related legal scrutiny by suing the city of Berkeley, California, over a local ordinance that prohibits the use of rent-setting algorithms. In its April 2 complaint, the company argued that the measure violates the First Amendment by imposing unconstitutional restrictions on content-based speech.

Source: Reuters