Biden DOJ prosecution of RealPage will undermine multifamily housing supply and affordability

The Biden Justice Department along with 8 state attorneys general on August 23 announced a lawsuit against real estate software company RealPage, accusing the company of engaging in a price-fixing scheme aimed at driving up residential rent prices for apartment and other multifamily housing dwellers. But Competitive Enterprise Institute experts dispute the notion that government prosecution of a software company will help anyone.

Ryan Young, CEI Senior Economist:

“Rising housing costs are a real problem, but an antitrust lawsuit against an information-gathering website is shooting the messenger. Rents aren’t high because of RealPage; they’re high because of a double whammy of bad monetary policy and bad regulations.

“Instead of courtroom grandstanding, politicians should let people build more housing. Policymakers should open up zoning restrictions, shorten routine environmental reviews, give NIMBYs fewer ways to block new construction, and remove steel and lumber tariffs that add thousands of dollars to the cost of each new home.”

John Berlau, CEI Director of Financial Policy:

 “In her acceptance speech last week for the Democratic presidential nomination, Kamala Harris expressed desire for increased housing supply and American leadership on AI. These are policy goals shared by members of both parties. Unfortunately, the DOJ’s lawsuit against RealPage will undermine both these goals, shutting down an innovative method to communicate about supply and demand and creating more uncertainty in the rental market. That will mean fewer units available for rent and potentially higher prices.”