Oregon, alongside eight other states, has proposed a $7 million settlement to prevent Greystar Management Services, the nation’s largest landlord, from using algorithmic software to artificially inflate rent prices. If approved by the U.S. District Court for the Middle District of North Carolina, this settlement would allow Greystar to avoid trial and further litigation costs by agreeing to the states’ conditions.
Greystar manages nearly 950,000 rental units across the United States, with approximately 19,000 units located in Portland as of 2023, according to the Portland Business Journal. A spokesperson for the company was unable to provide specific figures for its operations in Oregon.
The core of the states’ complaint revolves around Greystar and other large landlords utilizing rent-setting algorithms developed by RealPage, a Texas-based software company. These algorithms provided pricing recommendations based on sensitive competitive data, allegedly leading to coordinated rent increases among landlords.
Oregon Attorney General Dan Rayfield stated, “When the largest landlord in America uses an algorithm to price-fix the rent, the result is simple: people pay more. It squeezes working families when the cost of housing is already at an all-time high.” Rayfield emphasized that the proposed settlement holds Greystar accountable and represents a victory for Oregonians and the principle of law.
If the court approves the settlement, Greystar will cease using algorithmic rent-setting software and will be prohibited from sharing sensitive data with other landlords. Additionally, the company must refrain from participating in meetings hosted by RealPage that involve other landlords.
The settlement requires Greystar to pay the $7 million to the state of California, which will distribute the funds among the participating states, including Oregon, Colorado, Connecticut, Illinois, Minnesota, North Carolina, Tennessee, and Massachusetts. This proposed settlement follows a non-monetary agreement reached by Greystar with the U.S. Department of Justice in August 2023, stemming from a lawsuit initiated under the Biden administration.
This proposal came just one day before the Portland City Council voted to ban algorithmic price fixing, highlighting the urgency of addressing rising housing costs. The settlement aims to provide immediate relief and prevent further exploitation of renters in a challenging market.
