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Department of Justice Opens Criminal Investigation Into “Housing Cartel”

Apr 24, 2024

Criminal investigation into RealPage for possible algorithmic price fixing in the rental housing market. Discussion on anti-competitive practices and collusion in raising rents. Exploring complexities of pricing items in real estate and the impact of technology on market dynamics. Advocating for housing policy reforms and empowering local communities. Delving into human behavior, brain evolution, and the importance of expanding empathy circles.

56:42

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Quick takeaways

The US Department of Justice is investigating RealPage for potential algorithmic price-fixing in the rental housing market, highlighting concerns about centralized schemes influencing rent prices.

Algorithmic pricing software platforms are reshaping housing dynamics by prioritizing profit maximization over local interactions, impacting affordability and supply decisions.

The importance of understanding localized dynamics and human interactions in setting rental prices is emphasized, contrasting with automated systems driven by profit motives.

Deep dives

Release of Chuck Morone's Third Book on Housing

Chuck Morone announces the release of his third book focusing on housing, co-written with Daniel Hargis. The book delves into the housing crisis and the complexities of the market's response to supply and demand dynamics. The author reflects on the manuscript submission and the excitement of receiving the first copies.

Introduction

4min

Investigation into Algorithmic Price Fixing in Rental Housing Market

4min

Navigating the Complexities of Pricing and Selling in Real Estate

30min

Exploring Market Dynamics Through a Forest Analogy

3min

Reforming Housing Policies: Beyond Zoning Laws

4min

Empowering Local Communities and NBA Excitement

7min

Exploring Human Behavior and Brain Evolution

6min

The U.S. Department of Justice is opening a criminal investigation into a major software company called RealPage, which is described in the lawsuit as the “big tech” company of rental housing. It provides software that is used by landlords (and, typically, landlords who are large holders of rental property) to estimate supply and demand for their listings in order to help them maximize rents. The question is whether or not RealPage is facilitating algorithmic price fixing for some of the largest residential property owners and management firms—amounting to what DC Attorney General Brian Schwalb has described as a “housing cartel.” And since Strong Towns has just released Escaping the Housing Trap: The Strong Towns Response to the Housing Crisis, we figured there was no better time to discuss this story than now.

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