NC Attorney General Jeff Jackson Sues Major Landlords Over Alleged Rent-Fixing Scheme
Jeff Jackson, North Carolina’s newly sworn-in Attorney General, has launched a bold legal challenge against six prominent property management firms, accusing them of engaging in anti-competitive practices that have artificially driven up rental prices. The federal lawsuit, filed in conjunction with nine other states and the U.S. Department of Justice, takes aim at the practices of Greystar Real Estate Partners, LivCor, Camden Property Trust, Cushman & Wakefield, Willow Bridge Property Company, and Cortland Management. Together, these companies manage a staggering 70,000 rental units across the state, making the lawsuit a landmark action in the fight against spiraling housing costs.
The complaint alleges that these firms colluded with RealPage, a software company that leverages proprietary algorithms to analyze sensitive competitive data and recommend rental prices. Prosecutors argue that the system enables landlords to avoid market-driven pricing, allowing them to synchronize rent increases and suppress competition.
The Evidence and Allegations
According to court filings, the RealPage algorithm acts as a linchpin for the alleged conspiracy. It uses confidential data from participating landlords to recommend rental rates that maximize profits by limiting price competition. While RealPage asserts that fewer than 10% of rental properties in the U.S. rely on its algorithm, prosecutors claim the system exerts significant influence over rental markets, especially in major urban areas.
“Algorithms like RealPage’s are more than tools—they are weapons used to undermine fair competition,” Jackson said during the announcement of the lawsuit. “North Carolinians already face record-high rents. To exploit them further by conspiring to inflate prices is unconscionable.”
Jennifer Bowcock, RealPage’s senior vice president of communications, defended the company’s practices, framing the lawsuit as misguided. “The housing affordability crisis is caused by under-supply, not technology,” she said, asserting that the company’s software merely offers non-binding recommendations.
Industry Pushback and Broader Implications
The named property management firms, which collectively hold significant sway over the housing market, have largely dismissed the claims. Greystar, one of the largest players in the industry, issued a statement emphasizing its commitment to ethical business practices. “At no time did Greystar engage in anti-competitive behavior,” the company stated, pledging to “vigorously defend against these allegations.”
The lawsuit has sparked heated debate in housing policy circles. Critics of RealPage argue that such platforms exemplify the dangers of unchecked tech-driven consolidation in critical markets. Proponents of the lawsuit contend that it represents a crucial first step toward leveling the playing field for tenants and smaller landlords who cannot compete with such sophisticated tools.
Housing Affordability Crisis in Focus
The backdrop to this lawsuit is North Carolina’s worsening housing affordability crisis. According to a 2024 housing market report, rental prices in Charlotte have surged by 15% over the past year, outpacing wage growth and leaving many residents struggling to make ends meet. The state has become a focal point for debates over the intersection of housing, technology, and regulation.
“This lawsuit isn’t just about specific landlords—it’s about protecting the fundamental right to fair housing,” Jackson said. “If successful, this case could reshape the rental market nationwide.”
Context: The Role of Algorithms in Modern Housing
RealPage’s software is part of a larger trend of algorithm-driven pricing that has proliferated in industries ranging from ride-hailing to real estate. These systems promise efficiency and profitability but have also raised concerns about fairness and transparency. Critics argue that the use of such tools by industry giants can create de facto monopolies, squeezing out smaller players and disadvantaging consumers.
The lawsuit’s outcome could have sweeping implications for how technology is deployed in rental markets. A ruling against RealPage and its partners might trigger increased regulatory scrutiny of similar platforms across the country.
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