Jan 7, 2025 - News

Pricing software costs Twin Cities renters, White House finds

Illustration of a repeating pattern of houses made out of hundred dollar bills. — Illustration: Aïda Amer/Axios

Twin Cities renters paid an extra $26 per month on average when their landlords used rental pricing algorithms to determine what they pay, according to a White House analysis first shared with Axios.

Why it matters: From Minneapolis to D.C., policymakers are pushing back against software that they say allows landlords to collectively drive rents higher, even as housing remains unaffordable for many.

By the numbers: Around one in seven rental units in the Twin Cities used rental pricing software from the company RealPage, the analysis found.

Nationally, renters spent an extra $3.8 billion last year because of overall pricing algorithms — or an average of about $70 per month.

What we're watching: Two Minneapolis City Council members are pushing for a ban on the use of pricing algorithms locally. On Tuesday, they'll formally ask staff to draw up legislation on the topic.

The other side: Responding to the analysis, a RealPage spokesperson told Axios that the company is being made a scapegoat for broader housing policy failures.

RealPage has made similar arguments in response to a federal antitrust suit over its software.

Go deeper: Pricing software adds billions to rental costs, White House says

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Pricing software costs Twin Cities renters, White House finds

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