South Carolina – The U.S. Department of Justice has filed a lawsuit against six major landlords, including Charleston-based Greystar Real Estate Partners LLC, in what appears to be an extensive legal action highlighting a rising issue over housing affordability. Filed in North Carolina, the lawsuit accuses these businesses of engaging in a pricing strategy allegedly inflating rent rates for millions of Americans, therefore aggravating the national housing affordability crisis.
The controversy centers on allegations against software company RealPage Inc., which was initially sued by the DOJ in August 2023. The corporation is alleged to have created an algorithm allowing landlords to coordinate on rental pricing, therefore breaching the antitrust laws. The updated lawsuit claims that these landlords exchanged competitively sensitive data including rental prices, lease terms, and occupancy rates by synchronizing their pricing policies using RealPage’s platform.
Greystar allegedly “actively participated” in this program along with other well-known property management companies including Blackstone’s LivCor LLC, Camden Property Trust, and Cortland Management LLC. The DOJ’s investigation turned up cases in which Greystar and Camden shared specific information on pricing policies and rental rates.
Their combined portfolio consists of over 1.3 million units spread over 43 states and the District of Columbia, and this collaboration helped them to keep high rental rates across it.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division.
“Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
In response to the allegations, Greystar has issued a statement on its website vehemently denying any wrongdoing.
“We are disappointed that the DOJ added us and other operators to their lawsuit against RealPage. Greystar has and will conduct its business with the utmost integrity. At no time did Greystar engage in any anti-competitive practices. We will vigorously defend ourselves in this lawsuit,” Greystar said in a release.
These alleged practices particularly affect South Carolina, where rent rates have increased by about 30 percent since January 2020. The sharp rise has spurred state legislators to think about policies meant to reduce resident financial strain.
Introduced by Rep. Wendell Gilliard (D-Charleston), one legislative measure—the “South Carolina Rent Control Act—aims to control rent hikes and give more tenant protection. Still in the early stages, this bill would mandate that landlords provide advance notice of rent increases and limit the frequency and scope of these raises during the first year of tenancy.
Rep. Gilliard underlined the possible advantages of such laws, pointing out that lower rent rates might significantly reduce hardship and help to address the growing homelessness issue in the state. The House Labor, Commerce, and Industry Committee is reviewing the bill right now.
Not only in South Carolina but also throughout the country, the results of the court battle and the proposed legislation could establish significant precedents for the control of rental markets and the promotion of tenant rights.
