Greystar Reaches Settlement with DOJ Over Rental Practices

The largest landlord in the U.S., Greystar, has come to a settlement with the Department of Justice (DOJ) after being accused of improperly employing rent-setting algorithms and collaborating with competitors to boost profits.

Greystar, which oversees nearly 950,000 rental units across the country, agreed to a settlement proposed earlier this month. In a statement, the company confirmed this agreement.

The settlement follows allegations from federal prosecutors that Greystar, along with other landlords, utilized pricing software developed by RealPage to share confidential rental data and facilitate rent increases.

The Trump administration had also indicated that Greystar and other landlords engaged in direct discussions about sensitive topics, including pricing strategies for software and parameters for setting rents.

Federal officials claimed these actions were not competitive and adversely impacted Americans already struggling with rising housing costs.

“American greatness relies on a competitive free market, and we must prioritize making housing affordable again,” stated Attorney General Pam Bondy during the settlement announcement.

This agreement, pending judicial approval, prohibits Greystar from using sensitive information that could unfairly compete with its rivals.

A report from the White House last year showed that renters whose landlords used RealPage’s algorithms paid on average $70 more in rent. In cities like Atlanta, Dallas, and Denver, this increase could exceed $130.

While Greystar did not acknowledge any wrongdoing in the settlement, the company insisted via a statement that their use of RealPage’s software complies with all relevant laws.

Greystar expressed that they engaged in the settlement process to clarify the government’s interpretation of laws, noting the industry is facing “unclear regulatory guidance regarding revenue management tools.”