Landlord giant Greystar agrees to quit the rent‑jacking algorithm game (for now)
In the midst of a housing crisis stemming from unaffordability, rents keep going up and up, and we wonder why. Turns out, a giant landlord named Greystar was quietly playing algorithmic chicken with the entire rental market, sharing competitor rent data, using AI tools to set prices, and basically mowing the lawn while the rest of us picked the weeds. Now they’ve agreed to pay up and stop doing that… or at least stop admitting it.
Last week, Greystar agreed to stop using software offered by any company, including RealPage, that uses competitively sensitive information to align rent prices, California Atty. Gen. Rob Bonta said. Greystar also agreed to cooperate in the ongoing prosecution of RealPage and other defendant landlords.
“Whether it’s through smoke-filled backroom deals or through an algorithm on your computer screen, colluding to drive up prices is illegal,” Bonta said.
Greystar, which is based in Charleston, S.C., manages about 333 multifamily rental properties in California that use RealPage’s pricing software, the attorney general said.
The company has agreed to pay $7 million in penalties and fees to nine states, including California.
“We are pleased this matter is resolved and remain focused on serving our residents and clients.” Greystar spokesman Garrett Derderian said.
Nine states say they caught Greystar red‑handed, using software from RealPage that pulled in non‑public data from rival landlords and told Greystar where to raise rents, not “market forces.” In exchange for a $7 million penalty and a promise to quit the dark arts of rent algorithms, Greystar gets to keep managing almost a million units while the rest of us wonder what grift will be next.
Wow, that might be a penalty of $10 a unit.
They will find a another way to dick people over, because they can.