Warren, lawmakers urge Justice Department to review YieldStar, warn of de-facto price setting and collusion after Senate investigation — New letter reveals findings from lawmakers' investigation of RealPage’s YieldStar product that advises landlords on rent increases

TL;DR

New letter reveals findings from lawmakers' investigation of RealPage’s YieldStar Product that Advises Landlords on Rent Increases “Given YieldStar’s market share . the widespread use of its … proprietary rental data by the country’s largest landlords could result in de-facto price-setting by those companies, driving up prices and hurting renters”“The DOJ should act to protect American families and closely review rent-setting algorithms like YieldStar to determine if they are having anti-competitive effects on local housing markets that have seen increased institutional investor activity. The company’s response indicated that “YieldStar uses a proprietary algorithm to make recommendations to apartment providers about setting a price for rental units at their property,” and that “the YieldStar software is fundamentally built on the disruptive idea that a property’s internal supply and demand dynamics are much more important than external factors, such as rents offered by other properties

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