What the RealPage Settlement Means for Real Estate Tech

Pedro David Espinoza

By Pedro David Espinoza is the founder & CEO of Pan Peru USA

The real estate industry has lagged behind in leveraging AI to improve data analytics due to issues with data quality and fragmentation. The most popular proptech tools that have emerged from AI are those that create a robust and reliable data pool.

However, a recent US Department of Justice civil antitrust lawsuit reveals that real estate companies must be extremely cautious when tapping into AI-driven platforms that promise access to reliable, data-driven insights. The suit alleges that the RealPage platform, which uses AI to “leverage data insights and monetize space to create incremental yields,” provided landlords with a service that constituted price fixing.

The case highlights the challenges that regulators face in overseeing the use of AI tools. It also points to a shift in the proptech industry that could bring greater transparency to AI development and application.

Comprehensive renter data allegedly fuels

anticompetitive practices

The recent DOJ lawsuit targeting RealPage and a number of top landlords focuses on algorithmic pricing, a practice that leverages AI-driven data analytics to identify and determine rental rates that optimize rental income. According to RealPage’s website, its AI Revenue Management module gives landlords “transparent and straightforward recommendations that leverage AI modeling to strategically balance rent and occupancy.”

The DOJ alleges that the “strategic balance” landlords gain from using RealPage violates the law because it draws upon nonpublic, competitively sensitive information about rental rates and lease terms to train the platform’s algorithmic pricing process. The suit was expanded in early 2025 to target several high-profile landlords whom the DOJ claims subverted free-market competition by using “algorithmic coordination and other anticompetitive practices.”

One of the landlords named in the updated suit, a major developer and property manager, signed a proposed settlement agreement with the DOJ in August 2025. Under the terms of the agreement, the developer committed to refrain from using “any anticompetitive algorithm that generates pricing recommendations using its competitors’ competitively sensitive data or that incorporates certain anticompetitive features.”

The impact the RealPage case could have on proptech

Several key issues, including the rapid pace of development and deployment, have made it difficult for regulators to establish an effective framework for AI oversight in the real estate industry. Yet, as the RealPage lawsuit shows, the government is not oblivious to the potential for using AI in ways that violate business laws.

The DOJ case shows that future regulations will likely hold real estate companies accountable for how they utilize AI, even when they put their trust in third-party providers. At a minimum, real estate companies should expect stricter controls on data sharing and algorithmic transparency.

The RealPage case also suggests that government officials won’t tolerate AI-driven platforms exacerbating the challenges families face when trying to secure stable homes, such as poor credit or affordable housing. AI-driven rental platforms can also cause landlords to view affordable housing as a commodity rather than a necessity, or utilize algorithms to unfairly increase rent prices. Subjecting AI-driven pricing systems to bias audits and human oversight is essential to ensure they promote access, rather than exclusion.

To thrive in a landscape of increased regulatory scrutiny, proptech platforms must empower landlords to be profitable without robbing renters of the benefits of free market competition. Adopting that focus will allow developers to create a healthy ecosystem that blends profit with purpose.

Pedro David Espinoza is the founder & CEO of Pan Peru USA.