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Large apartment companies linked to rental fixing scheme continued to profit this year: Analysis

All six of the largest publicly traded apartment companies in the U.S. are said to be involved in the lease arrangement. Price Fixing Scandal An analysis by a left-leaning watchdog group showed gains rose in the first three months of the year. A Responsible America It was revealed exclusively to The Hill.

The analysis said the two companies made a combined $300 million in profits in the first quarter of this year, in part due to rising rents.

MidAmerica Apartments, the largest publicly listed apartment owner in the U.S., made a profit of $147.6 million between January and March. 5.4 percent increase From the same time last year.

Similarly, AvalonBay Communities, the country’s second-largest apartment company, reported profits of $173.4 million in March. 18 percent increase This is higher than the profit the company earned during the same period last year.

The company’s “rental and other income” revenue increased to about $711 million in the first quarter of this year, up 5.6% from the same period last year. press release From AvalonBay Communities.

“Given low turnover, solid occupancy and favorable rents, we feel we are well positioned as we enter peak leasing season,” AvalonBay Communities CEO Benjamin Schaal said on a conference call focused on the company’s earnings. Earlier this year.  

“Large corporate landlords continue to raise rents for ordinary families no matter how much their profits grow. Worse yet, many are doling out new bailouts to a few wealthy investors at the expense of struggling tenants,” Liz Zelnick, director of Accountable US’s Economic Security and Corporate Power program, said in a statement.

MidAmerica Apartments, Avalon Bay Communities and four other companies named in the report were part of 14 landlords sued by the Washington, D.C., attorney general’s office. last year They may have conspired to illegally raise rents for thousands of tenants by “collectively delegating pricing authority to RealPage.”

of Litigation claims

The software company RealPage worked with real estate companies to artificially inflate the prices of thousands of rental properties, resulting in area residents paying “millions of dollars above fair market value.”

The six apartment companies and RealPage have not yet responded to requests for comment from The Hill.

Americans are struggling to buy homes as rents rise faster than wages.

A recent analysis by Zillow and StreetEasy found that rents nationwide will rise 30.4% between 2019 and 2023, while wages have increased by about 20% over the same period.

new Ministry of Labor DataHousing costs remain high, according to a survey released Wednesday.

New data shows consumer prices were unchanged through May, and overall inflation appears to be slowing.

But housing costs rose for a fourth consecutive month in May, up 5.4% compared with the same period last year, the data showed.

The Bureau of Labor Statistics data was released just as the Federal Reserve’s Monetary Policy Committee is scheduled to announce its June interest rate decision.