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DOJ Restricts AI Access to Live Data to Prevent Algorithm-Driven Rent Increases

DOJ Restricts AI Access to Live Data to Prevent Algorithm-Driven Rent Increases

Bitget-RWA2025/11/25 22:16
By:Bitget-RWA

- DOJ settled with RealPage to block real-time data use in rent algorithms, ending claims of algorithmic collusion enabling price hikes. - The agreement prohibits using current lease data for pricing models and restricts access to competitors' nonpublic data. - Over 20 property firms, including Greystar, reached settlements, while states and cities enacted laws to curb algorithmic rent-setting. - Critics argue historical data limits may reduce pricing accuracy, but regulators aim to prevent AI-driven marke

A significant antitrust agreement has limited RealPage Inc.—a Texas-based software provider—from using real-time data in its rent-pricing algorithms, following accusations that the company enabled landlords to coordinate rental rates. The Department of Justice (DOJ) revealed the settlement on November 24, 2025,

which claimed RealPage’s technology encouraged “algorithmic collusion” by letting landlords increase rents with access to confidential market information. The agreement, pending court approval, into its pricing algorithms and limits the use of private data from rival landlords when making rent suggestions.

The DOJ argued that RealPage’s software replaced healthy market competition with coordinated pricing, asserting that the platform’s access to sensitive data allowed landlords to set rents above market value. “Rental prices should be determined by open market forces, not hidden algorithms,” stated Gail Slater, the DOJ’s antitrust leader, who

of reinstating fair competition. RealPage, which rejected the allegations, maintained that its system traditionally relied on aggregated, anonymous data to help lower rents and reduce vacancies. The company’s lawyer, Stephen Weissman, “misinformation” regarding its technology.

This settlement comes after a series of lawsuits against RealPage and its partners. In recent months, over twenty property management firms—including Greystar, the country’s largest landlord—

. Greystar agreed to pay $50 million to resolve a class-action suit and another $7 million to settle a separate claim involving nine states. , New York, and Illinois, joined the DOJ’s original complaint but did not participate in the final agreement.

State and municipal authorities have also taken steps to limit algorithm-driven rent setting. In October 2025, California and New York passed laws to curb the practice, while cities such as Philadelphia and Seattle enacted bans on such software.

about escalating housing prices and the influence of artificial intelligence on rent. Former Vice President Kamala Harris during her 2024 presidential run.

The DOJ’s lawsuit is among the first major antitrust cases to focus on algorithmic collusion, highlighting a growing regulatory interest in AI’s impact on markets. RealPage’s platform, used by landlords across the U.S., offered daily rent suggestions based on occupancy and market data.

that the company’s access to immediate data enabled it to subtly align rental prices across properties, undermining competition.

DOJ Restricts AI Access to Live Data to Prevent Algorithm-Driven Rent Increases image 0

Although the settlement avoids a lengthy trial, it leaves open questions about how AI will shape the future of housing markets.

must now use data that is at least twelve months old, a shift the company says will still allow for reliable pricing advice. However, advocates for affordable housing argue that these limitations may not sufficiently address deeper problems in the rental sector.

While RealPage is privately held, the regulatory scrutiny it faces has had a ripple effect throughout the real estate tech industry. Publicly traded companies such as

(ZG) and Redfin (RDNT) have also come under examination for their pricing technologies and data handling. As the housing industry increasingly turns to algorithmic pricing, the DOJ’s actions could shape investor perceptions of risk and regulatory challenges for tech firms in real estate.

These settlements and new regulations are transforming the property management sector. Although RealPage asserts it can adapt its models to rely on older data,

that these restrictions could make its pricing less accurate, possibly resulting in greater price swings and uncertainty for tenants.

With mounting legal and regulatory scrutiny, the rental market faces a pivotal moment. It remains uncertain whether this agreement will lead to more open and fair pricing or simply push algorithmic coordination into less visible forms.

represents a significant move into new territory at the crossroads of artificial intelligence, antitrust enforcement, and housing policy.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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