Introduction

On August 8, 2025, the U.S. Department of Justice (DOJ) announced a landmark proposed settlement with Greystar Management Services LLC, the largest landlord in the United States, to address allegations of anticompetitive practices in the rental housing market. This settlement targets Greystar’s use of algorithmic pricing schemes that allegedly stifled competition and drove up rents for millions of American renters. This blog post explores the background of the lawsuit, the details of the settlement, and the key lessons learned from this significant enforcement action.

Background on the Lawsuit

Greystar, headquartered in Charleston, South Carolina, manages nearly 950,000 rental units across the country, making it the largest residential property manager in the U.S. The DOJ’s Antitrust Division, alongside several state attorneys general, filed a lawsuit accusing Greystar and five other major landlords of engaging in algorithmic price-fixing through the use of RealPage’s revenue management software. The complaint alleged that these landlords shared competitively sensitive data, such as pricing strategies and rental rates, to generate pricing recommendations that aligned competitors’ rents, effectively reducing competition.

The lawsuit highlighted how RealPage’s algorithms incorporated anticompetitive features, enabling landlords to coordinate pricing strategies and avoid lowering rents, even in softening markets. This practice, according to federal prosecutors, led to artificially inflated rents, with one apartment complex reportedly boasting a 25% rent increase in a single year by using RealPage’s system. The DOJ argued that such coordination, whether through direct communication or algorithms, violated antitrust laws by harming consumers through higher rental costs.

The Settlement

The proposed consent decree, filed on August 8, 2025, in the U.S. District Court for the Middle District of North Carolina, outlines several key requirements for Greystar to restore competitive practices in the rental market. If approved, Greystar must:

• Cease Using Anticompetitive Algorithms: Greystar is prohibited from using any pricing algorithms that rely on competitors’ sensitive data or incorporate anticompetitive features.
• Stop Sharing Sensitive Information: The settlement bans Greystar from exchanging competitively sensitive information with other landlords.
• Accept Monitoring for Third-Party Algorithms: If Greystar uses a third-party pricing algorithm, it must be certified as compliant with the settlement terms, and a court-appointed monitor will oversee its use.
• Avoid RealPage-Hosted Competitor Meetings: Greystar is barred from participating in RealPage-hosted meetings with competing landlords to prevent further coordination.
• Cooperate with DOJ’s Case Against RealPage: Greystar is required to assist the DOJ in its ongoing monopolization claims against RealPage, the software provider central to the alleged scheme.

The settlement, pending court approval following a 60-day public comment period as required by the Tunney Act, also aligns with a separate class-action lawsuit settlement Greystar reached with renters, which includes “significant” monetary damages to be presented for court approval as early as October 2025. Greystar has denied wrongdoing but agreed to the settlements to clarify legal standards and focus on its business operations.

Lessons Learned

This settlement marks a pivotal moment in addressing the impact of technology on market competition, particularly in the housing sector. Several key lessons emerge:

1. Algorithmic Accountability: The case underscores the growing scrutiny of algorithms in business practices. While technology can optimize operations, its misuse to coordinate pricing or suppress competition can lead to significant legal and financial consequences.
2. Consumer Protection in Housing: The DOJ’s action reflects a broader commitment to protecting working-class Americans from practices that inflate essential costs like rent. As Attorney General Pamela Bondi emphasized, free-market competition is critical to making housing affordable.
3. Collaboration Between Regulators and Industry: Greystar’s cooperation with the DOJ’s case against RealPage highlights the importance of industry players working with regulators to address systemic issues, potentially leading to broader reforms in rental pricing practices.
4. Transparency and Oversight: The requirement for a court-appointed monitor for third-party algorithms signals the need for robust oversight to ensure compliance with antitrust laws, particularly as technology becomes more embedded in business operations.
5. Impact on Renters: While the settlement does not quantify the direct relief for renters, the class-action settlement’s promise of monetary damages suggests that affected tenants may see some financial recourse, emphasizing the role of collective action in addressing widespread harm.

Conclusion

The DOJ’s proposed settlement with Greystar is a significant step toward curbing anticompetitive practices in the U.S. rental market. By targeting algorithmic price-fixing, the settlement aims to restore competition and protect renters from inflated costs. As the case against RealPage and other landlords continues, this action sets a precedent for how regulators will address the intersection of technology and market fairness. For renters, industry stakeholders, and policymakers, this settlement serves as a reminder that competition, not coordination, should drive affordability in housing.

Andre Barlow

202-589-1838

abarlow@dbmlawgroup.com