With Shared Software, Landlords Are Teaming Up to Raise Rents

San Francisco has enacted a ban on RealPage, a software company that provides algorithmic pricing recommendations to landlords, which critics argue facilitates rent collusion and price-fixing. The city is grappling with a severe housing crisis characterized by high rents and limited supply, exacerbated by restrictive zoning laws and high interest rates. RealPage's software, used by over 31,000 landlords managing nearly 20 million rental units, consistently suggests rent increases regardless of market conditions, contributing to rising housing costs. Investigations and lawsuits against RealPage are increasing, with the Department of Justice launching a criminal antitrust investigation. Critics highlight that the software's focus on maximizing profits often disregards the human element of housing, leading to a significant portion of the population being rent-burdened. The broader issue lies in the structural problems of the housing market, where housing is treated as an investment rather than a basic need, creating incentives for landlords to restrict supply and raise prices. Efforts to address these issues, such as San Francisco's ban and ongoing legal actions, are seen as necessary steps, but the underlying profit-driven motives in housing provision remain a significant challenge.

- San Francisco has banned RealPage to combat rent collusion.

- RealPage's software is accused of driving up rental prices across the U.S.

- The housing crisis is exacerbated by restrictive zoning and high interest rates.

- Many households are rent-burdened, with significant health implications.

- Structural issues in the housing market prioritize profit over affordable housing solutions.