1 big thing: DOJ says, "The rent is too damn high". (April Rubin & Nathan Boney, Axios, August 23, 2024)

Waiting to see how our St. Johns County Board of County Commissioners responds the next time it refuses to take action on creating a Public Housing Agency (like some 64 of 67 Florida counties have). From Axios: 

1 big thing: DOJ says, "The rent is too damn high"

By April Rubin and Nathan Bomey

Illustration: Aïda Amer/Axios

The federal government sued RealPage today, accusing the popular property management system of allowing apartment landlords to collude to keep rents artificially high. Why it matters: The price of housing has become a major source of economic and political angst, with both presidential candidates pitching ways to ease shelter costs. Driving the news: The DOJ's antitrust lawsuit alleges that RealPage schemed to reduce competition in the apartment rental market via its monopoly of rent price-setting software. The company's algorithm recommended rents to landlords based on pooled "nonpublic, competitively sensitive" data, illegally allowing them to conspire to maximize rent and avoid competing with each other, the DOJ alleges. The attorneys general of eight states joined the civil suit. The intrigue: No landlords were named as defendants in the suit. "Everyone knows the rent is too damn high," U.S. Attorney General Merrick Garland said at a press conference when asked about the focus of the investigation. "And we allege this is one of the reasons why. The other side: RealPage's software was built to be legally compliant, spokesperson Jennifer Bowcock says. The lawsuit is "merely a distraction from the fundamental economic and political issues driving inflation throughout our economy — and housing affordability in particular," she says. State of play: RealPage has 80% market share in commercial revenue management software for multifamily units, according to the DOJ. "In a free market, these landlords would otherwise be competing independently to attract renters based on pricing, discounts, concessions, lease terms, and other dimensions of apartment leasing," the DOJ said. 💭 Our thought bubble, from Axios' Ashley Gold: Both the DOJ and the FTC have been warning that they won't hesitate to bring action against companies using algorithms that facilitate lawbreaking.