Nation's largest landlord agrees to stop using AI to set rental prices

Major news for renters in the DMV: the nation's largest landlord just struck a deal with the Justice Department, agreeing to stop using artificial intelligence when it comes to setting prices. FOX 5's Homa Bash reports.

WASHINGTON - In a major move for renters in the DMV, the nation's largest landlord has struck a deal with the Justice Department, agreeing to stop using artificial intelligence when it comes to setting prices.

Dig deeper:

We're talking about Greystar—they own thousands of apartment buildings across the country, many in D.C., Maryland and Virginia.

The deal with the DOJ means they've agreed to stop using an AI software that helped raise rents and cut competition.

"Price fixing was an issue, competition was an issue, and that's a major reason ai regulation is necessary because they were able to use AI and enter in all this data in order to basically screw people out of their housing to put it bluntly and frankly," attorney Madeline Summerville.

Federal attorneys had accused Greystar, which manages nearly a million units nationwide of using algorithms to increase rents by colluding with other landlords all using a tech company called RealPage.

Basically, the software let landlords share pricing data and personal information so they could all raise rents at the same time.

For example, one apartment complex cited raised rent by 25% in a single year.

Big picture view:

According to the D.C. Attorney General, more than 60% of units in large apartment buildings in the District are priced using real-page's software and in the Washington, Arlington and Alexandria metro area, 90% of units are priced using the site.

Summerville is an attorney who's been following the case closely. She tells FOX 5 that on the outside, it may seem like this settlement is a step toward fairer housing, but this is only one company out of many who are accused of price-fixing.

"They didn't admit liability, they didn't admit they did anything wrong and secondly they said it was really unfair because you guys didn't tell us what we could and couldn't do. the point is, the American people shouldn't be subject to what the real estate companies can get away with," attorney Madeline Summerville said.

What they're saying:

Accountable.us is a watchdog group. In a statement, they told FOX 5 that "this is a win for renters who have been squeezed by corporate greed and AI-driven collusion, but with expenses rising, it's not enough for one company to opt out of collusion. Elected officials must step up and tackle all price-gougers like realpage."

Maryland's attorney general sued real page earlier this year and in June, D.C.s AG secured the first settlement against the tech company.

The Justice Department also has an ongoing lawsuit underway and has also made a deal with the nation's largest landlord in a case about illegally raising rents.

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