RealPage software raises Dallas-area rents, report finds
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Dallas-area renters spent $132 more a month in 2023 if their apartment landlords used software developed by Richardson-based RealPage, according to a new analysis from the White House Council of Economic Advisers first shared with Axios.
Why it matters: U.S. renters spent an extra $3.8 billion last year because of pricing algorithms used by landlords, the analysis found.
- RealPage controls 80% of the market for rent-setting software. The Department of Justice has filed an antitrust suit against the company, alleging its pricing algorithm allows landlords to collectively push rents higher.
What they found: The researchers evaluated two scenarios: property managers using RealPage software to set prices and landlords setting prices individually.
- U.S. renters who lived in a building that used a price-setting algorithm spent an average of $70 more a month.
- Renters in metro areas where RealPage use is more common spent even more in 2023.
Zoom in: Atlanta had the highest use of the software among landlords of multifamily housing, with nearly 70% using RealPage products. Renters in those buildings spent an average of $181 more a month, per the CEA's analysis.
- The Dallas metro had the second highest usage of the software, with more than half of landlords using it.
What they're saying: The company hasn't yet seen the CEA analysis, which specifically looked at the purported impacts of RealPage's software. But when told about the report, company spokeswoman Jennifer Bowcock said:
- "This Administration should stop scapegoating RealPage's legally compliant technology for housing policy failures and take care to not stifle the innovation that will strengthen America's economy, now and in the future."
Reality check: Earlier this month, the company filed a motion seeking to dismiss the DOJ's claims in the antitrust suit, arguing that the agency hasn't shown any real anticompetitive effects of its product.
- The White House report notes that a long-term shortage of affordable housing is the main reason rents are increasing.
What we're watching: Whether the incoming Trump administration will pursue the suit against RealPage. The analysis looks like the White House's last push to draw attention to the issue.