Recent headlines have been dominated by numerous significant events, but one important development may have slipped under the radar. On Thursday, Greystar, the largest landlord in the United States, finalized a $7 million settlement with nine states that had accused the company of colluding to manipulate rental prices. Greystar, along with other large property management firms, utilized software from Texas-based RealPage to coordinate their rent increases.
The $7 million settlement amount is indeed noteworthy. To illustrate the significance of this figure, here’s a brief overview of Greystar:
Greystar stands as a premier global real estate firm, specializing in property management, investment, development, and construction services for high-quality rental housing. With its headquarters in Charleston, South Carolina, Greystar oversees and manages over $300 billion worth of real estate across nearly 250 markets worldwide, boasting a presence in North America, Europe, South America, and the Asia-Pacific region. As the largest apartment operator in the United States, Greystar manages more than 1,000,000 units globally. The company manages assets exceeding $79 billion, including approximately $35 billion in development assets and over $30 billion in regulated assets.
Being a private entity, Greystar does not disclose its earnings; however, the $7 million settlement represents a mere 0.002% of the $300 billion in real estate under its management. Even when factoring in the $50 million settlement reached last month regarding a class-action lawsuit over its pricing software, the total still falls well below one percent.
Yet, California’s Democratic Attorney General Rob Bonta publicly praised the $7 million settlement, asserting:
“Whether it’s through smoke-filled backroom deals or through an algorithm on your computer screen, colluding to drive up prices is illegal. Families across the country are facing a rental affordability crisis. Companies that intentionally exacerbate this crisis to enrich themselves can be assured that I will leverage the full power of my office to hold them accountable.”
Perhaps the companies are quaking in their boots, but skepticism remains.
As part of the settlement, Greystar also committed to imposing “limits” on using software that relies on confidential data from other landlords to determine rents, although the exact nature of these limits is unclear. Back in August, Greystar had previously settled with the Department of Justice without admitting guilt or paying any significant fine. An intriguing aspect of the imposed restrictions on price-fixing software is highlighted by Mintz:
Importantly, the final judgment does not prohibit Greystar’s algorithmic pricing use but instead establishes conditions that must be met and certified before such use—albeit only in certain circumstances. For example, if Greystar utilizes a RealPage revenue management product following the court’s final judgment in the RealPage case, no certification is required.
The agreement with the states explicitly bars Greystar from colluding with other landlords for now, yet leaves room for maneuvering in the future. The settlement notes:
Greystar may license or utilize a Revenue Management Product in a settling state that adheres to the conditions of an agreed final judgment between the United States and RealPage in United States et al. v. RealPage et al.
This stipulation refers to an ongoing federal case against RealPage, suggesting that the states are effectively deferring to the Trump-era Justice Department. Some speculate that lenient settlements with large landlords like Greystar and Cortland, which includes cooperation with the case against RealPage, signal that RealPage may face serious repercussions. However, skepticism prevails, as it seems more likely that this is merely the initial step in addressing deeper systemic issues.
An essential piece from the WSJ dated August 6, “MAGA Antitrust Agenda Under Siege by Lobbyists Close to Trump,” details how corporate lobbying is influencing favorable outcomes in antitrust investigations. Regarding RealPage, the article notes:
Other companies under antitrust scrutiny are now eager to hire lawyers or lobbyists linked to Trump following the favorable settlement experienced by HPE, according to multiple defense attorneys representing merging firms before the Justice Department.
Thoma Bravo, a private-equity firm owning a company facing multiple antitrust complaints, also enlisted [Brian Ballard—a longtime Trump backer] to lobby on competition matters related to the real estate sector.
Given that the state settlement has shifted responsibility to the federal level, should the Trump administration’s leniency facilitate a favorable outcome, Greystar and its associates may soon resume their previous practices.
For now, Greystar continues its operations unimpeded—albeit without the illegal price-fixing.
2/ That made the news. Greystar’s thousands of other tenants deal with something that never does: They’re nickel and dimed with junk fees:
$4 for no cockroaches
$20 to start paying rent
$5 to charge you rent monthly
$8 to pay online
$25 for “valet trash” pic.twitter.com/zwI3Xsnrja
— Alvaro Bedoya (@BedoyaUSA) September 15, 2025
It’s also essential to note that the settlement reached with the nine states pertains only to those specific states and does not preclude Greystar from potentially fixing prices elsewhere. The settlement does not address the fact that the company oversees over 900,000 units nationwide—up from 794,000 a few years prior—including approximately 100,000 student beds—which grants Greystar substantial influence over rental markets.
Moreover, the California Attorney General assures us that the $7 million settlement represents a victory for the public. However, in reality, this reflects a broader issue where companies can violate laws for an extended period, adversely affect people’s lives, profit significantly, and then merely pay a small fine to resolve the matter. This situation exemplifies a troubling dynamic within America’s legal system.
Let’s briefly summarize Greystar’s negligible financial repercussions for its actions:
The Crime
Greystar was among many large rental management firms utilizing RealPage’s software—a private equity-owned entity providing programs for property management that enabled companies to share sensitive pricing and vacancy information, artificially inflating rents. [1]
Rental markets heavily influenced by sizable landlords using this price-fixing software have observed astonishing rent increases in recent years—particularly after 2016, coinciding with RealPage’s acquisition of its main competitor, which bolstered its market presence and likely contributed to rising eviction rates and homelessness. Lawsuits reveal that RealPage’s software purportedly influences at least 16 million rental units across the US, with private equity-driven property management firms enthusiastically adopting its technology. Another lawsuit initiated in 2023 targets Yardi Systems and respective property management firms utilizing its price-setting software, affecting an additional eight million units.
RealPage executives have highlighted the significant impact their software has on rental prices. Andrew Bowen, a company executive, once remarked that the software “drives” rental increases, indicating that property managers might prefer automated price adjustments to manually imposing double-digit rent hikes in a single month.
One lawsuit alleges that following RealPage’s guidance, major rental management companies like Greystar sometimes opted to keep units vacant even amidst a homelessness crisis:
RealPage allows participating Lessors to adjust supply levels to avert price competition. In competitive markets characterized by excess supply and lower prices, this arrangement impedes lawful competition. RealPage provides Lessors with the necessary information to stagger lease renewals and prevent oversupply, resulting in landlords holding vacant units and neglecting the conventional wisdom of maximizing occupancy to maintain high rental prices.
Here’s a remark from former RealPage CEO Steve Winn on this unconventional strategy:
During a 2017 earnings call, Winn remarked that one major property management firm, overseeing over 40,000 units, discovered it could maximize profits by maintaining lower occupancy rates—an approach that would have previously caused discomfort among management.
Traditionally, they sought occupancy levels of 97% or 98% in competitive markets, but upon implementing YieldStar, they found that higher rents alongside some vacant apartments resulted in increased revenue.
The Victims
In cities dominated by Wall Street landlords utilizing RealPage’s technology, there has been a notable rise in homelessness and related fatalities. Though correlation does not imply causation, the data suggests:
- There’s been a significant increase in homelessness and deaths in areas where Wall Street landlords deploy colusion software.
- This situation inflates rents and creates an artificial scarcity of housing.
- A primary factor cited for homelessness is the shortage of affordable housing.
It’s crucial to recognize the considerable market power that a coalition of Wall Street landlords employing common price-setting software holds in several regions. Cities like Seattle, San Francisco, New York, Boston, Nashville, Dallas, and Atlanta can be significantly affected, especially when collusion occurs across various corporations.
Take Los Angeles, for instance, where Greystar operates multiple properties and is central to the nation’s homelessness crisis.
Los Angeles County ranks as the 6th largest multifamily market, with 448,848 completed units. A 2021 report from Strategic Actions for a Just Economy, which advocates for tenant rights and economic equity, found that more than two thirds of all LA rentals are now owned by speculative investment entities.
Corporate landlords mentioned in the RealPage lawsuits include Essex Property Trust, Equity Residential, and AvalonBay Communities, which are pivotal players in LA’s real estate management.
Collectively, they control 35,020 multifamily units, accounting for 7.8 percent of LA County’s total 448,848 units.
Legal actions taken against RealPage and substantial property management firms indicate that numerous other companies utilize RealPage’s rent-setting tool in LA, together managing over 52 percent of all rental apartment buildings in the Los Angeles market. [1]
A separate lawsuit against Yardi, a company similar to RealPage, claims it employed its RENTmaximizer (now Revenue IQ) product in ways akin to those alleged against RealPage.
Incorporating Yardi into the mix suggests that approximately 79 percent of multifamily rental units in LA County use collusion software. Between 2016 and 2024, rents have surged by 41 percent since RealPage reached “critical mass”.
Simultaneously, a 2021 report from Strategic Actions for a Just Economy indicates these major landlords using collusion software are significantly responsible for the rising frequency of mass evictions through the Ellis Act.
Ultimately, what do price manipulation, increased vacancy rates, and mass evictions result in?
A 2022 study by The Guardian and the University of Washington revealed that, across 73 US cities and counties, there had been at least 18,000 deaths among people experiencing homelessness from 2016 to 2020, marking a staggering 77 percent increase during that time span. (The federal government lacks a mechanism to track homeless deaths, and many estimates suggest the true number may be much higher.)
In a twist of irony, executives publicly applaud their use of RealPage’s technology while dismissing human consequences:
Ric Campo, CEO of Defendant Lessor Camden, has boasted about the revenue generated from escalating rents and “pushing people out” of their residential leases due to unaffordability, claiming a net gain of “$10 million.”
The timeframe for this income is ambiguous (a month? a quarter?), but it is evident that it far exceeds the amount Greystar just paid as a fine in its socially destructive actions.
Notes
[1] Other real estate giants named in lawsuits for allegedly using RealPage software for collusion and maintaining artificially high rents include the following:
- Trammell Crow Company, based in Dallas and a subsidiary of CBRE Group, the world’s largest commercial real estate services and investment firm.
- Lincoln Property Co., managing or leasing over 403 million square feet across the US.
- FPI Management, with more than 155,000 units currently managed in 18 states.
- Avenue5, managing $22 billion in multifamily and single-family assets nationwide.
- Equity Residential, the 5th largest apartment owner in the US, primarily in Southern California, San Francisco, Washington, D.C., New York City, Boston, Seattle, Denver, Atlanta, Dallas/Ft. Worth, and Austin.
- Mid-America Apartment Communities, owning or holding interest in 101,229 homes in 16 states as of June 30, 2022.
- Essex Property Trust (62,000 units), specializing in multifamily apartment community acquisition, development, and management in supply-constrained markets on the west coast.
- Thrive Community Management, with 18,700 units in Washington and Oregon.
- AvalonBay Communities, Inc., which has a direct or indirect ownership interest in 293 apartment communities comprising 88,405 homes across 12 states and the District of Columbia as of September 30, 2022.
- Cushman & Wakefield, managing a portfolio of 172,000 units.
- Security Properties, indicating interests in 113 assets that encompass nearly 22,354 multifamily housing units.
- Cardinal Group Holdings, LLC, managing 89,000 units and over 100,000 beds, with a strong presence in student housing.
- CA Ventures Global Services LLC, managing over 60,000 beds across 69 university markets.
- DP Preiss Co., specializing in student housing with over 30,000 beds in 12 states.
