Government has decided they want to be in the apartment business now

3,367 Views | 29 Replies | Last: 3 yr ago by No Spin Ag
FriscoKid
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https://news.bloomberglaw.com/esg/realpage-major-landlords-face-antitrust-lawsuit-over-rent-spike

All apartments are using pricing software to set the rent rates these day. Biden administration says that owners are just charging too much and they want to control another part of the private economy.

I welcome our new government overlords.
not hedge
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Govt = Corporate Elite
AGHouston11
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In every aspect the left wants total control and are on the fast train to communism ………,
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Ag87H2O
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November can't get here soon enough.
ChemEAg08
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TEXIT
Central Committee
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Evict all renters.

Turn the nice ones to condos and sell them. Raze the old ones and redevelop.

Profit.
You can't fix stupid.
Malibu
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Sharing information for the purposes of artificially raising prices is in fact anticompetitive behavior under the Sherman act. From reading this, it appears that the government is not suing because these companies are raising rents, they are suing because they are engaging in potentially anti-competitive business practices and operating like an illegal cartel. Given how easy pricing discovery is simply by running a bot to scrub data on craigslist, Zillow, and apartments.com, and the still small overall market size of the defendant's, this lawsuit seems destined to fail.
FriscoKid
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Malibu2 said:

Sharing information for the purposes of artificially raising prices is in fact anticompetitive behavior under the Sherman act. From reading this, it appears that the government is not suing because these companies are raising rents, they are suing because they are engaging in potentially anti-competitive business practices and operating like an illegal cartel. Given how easy pricing discovery is simply by running a bot to scrub data on craigslist, Zillow, and apartments.com, and the still small overall market size of the defendant's, this lawsuit seems destined to fail.

That's not how the SW works though.
Maroon Dawn
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Suburban leftists who support this crap should have to live in government run housing projects
JW
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the price is only what a renter will pay for it. not a penny more or less.
Line Ate Member
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Well government was I. Charge of some housing developments. Anyone know if I can get an apartment in Cabrini Greens?!?
1939
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I work for a real estate investment company and we use Realpage (LRO) for pricing GUIDANCE, not actual pricing. I could go on and on as to why this is BS but I'll save it.
bmks270
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Central Committee said:

Evict all renters.

Turn the nice ones to condos and sell them. Raze the old ones and redevelop.

Profit.


This literally happened to an apartment I lived in around 2007/2008. Peak of the real estate bubble. Investment group buys apartment neighborhood, no lease renewals, tenants could either buy the apartment they were living in as a condo or move out… obviously all of the current tenants moved out into other nearby apartments. Real estate bubble popped, "value" of the "condo" they were selling plummeted and the investors went bankrupt. The neighborhood remained apartments after all the tenants moved with no meaningful condo sales and also no tenants since they kicked everyone out.
Ag_EE
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You own nothing and be happy
BTHOB-98
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Stop raising my property taxes and I will stop raising the rent on my tenants!!!! There is a dirrect correlation. Don't believe me check the percentages of rent increase against the percentage of tax increase in the central texas market and you will see.

This is posturing by the administration because they know as interest rates climb less people can buy. When that happens apartments fill up. When things are full then property taxes increase based on value and then rents have to go up.
FriscoKid
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1939 said:

I work for a real estate investment company and we use Realpage (LRO) for pricing GUIDANCE, not actual pricing. I could go on and on as to why this is BS but I'll save it.

Yep. It's a suggested retail price based on the condition of your property and the market.
FriscoKid
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She sent this tweet 5 days ago BEFORE THE SUIT WAS FILED. Look at who she has worked with in the past... Political hit job.
javajaws
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I think the only way the government has a case here is if the software uses private data from one customer to assist in setting prices for another customer. If instead, it relies only on publicly available data I see no chance the gov wins.

From reading the links above it does kind of sound like they are using both private data from other customers as well as public data so this should make for an interesting court case.

For their customers to willingly share their pricing and occupancy data with other customers via the software I would think a case could be made for collusion of some sort.

On the flip side, such software really has great benefit to the market as a whole as it is clearly pointing out a supply problem in housing in these markets where rates went up when used. In the long term this should help get them more housing built and thus lower monthly prices.
NTAS
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Lets not spend billions of dollars to incentivize people to not work to better themselves, only to watch the free housing to be destroyed. There is no dignity in receiving something for free and then trashing it.

Government has already failed in this endeavor, we call them projects.
FriscoKid
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Pricing is always public. I think it has to be under the fair housing act.

I guess the problem could be that company A, B, and C all use the pricing software and the software pushes the recommended price higher for all three properties. (It could just as easily push the price lower for all three properties if there is a lack of demand)

I fail to see how this is any different than secret shoppers finding out what other stores are charging for their goods. Or car dealers pricing their cars about the same as another dealer because that's what the market will support.

To me, this feels like government stepping in and controlling prices because they think it's unfair.
geoag58
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Don't dimtards ever learn you should never go full communist?
Fight against the dictatorship of the federal bureaucracy!
Malibu
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Everyone advertises online anyways. Price discovery is easy. That's why this is wild.
Ellis Wyatt
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Soon enough, we'll be living like the eastern bloc countries.

FORWARD! (or backward, whatever)









I am sure DallasAg94 has been in similar places. I can't even describe the smell in the hallway of these types of buildings.

javajaws
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FriscoKid said:

Pricing is always public. I think it has to be under the fair housing act.

I guess the problem could be that company A, B, and C all use the pricing software and the software pushes the recommended price higher for all three properties. (It could just as easily push the price lower for all three properties if there is a lack of demand)

I fail to see how this is any different than secret shoppers finding out what other stores are charging for their goods. Or car dealers pricing their cars about the same as another dealer because that's what the market will support.

To me, this feels like government stepping in and controlling prices because they think it's unfair.
But its not just price data, but also vacancy counts, etc. Not sure if all of that is publicly available or not. If all that is publicly available then I see no merit for this suit at all.

Agree though that this could just as easily push prices lower. Although the likelihood of that happening is probably pretty small.
ThunderCougarFalconBird
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The lawsuit referred to in OP's article is a class action brought on behalf of the class against large landlords who they allege are acting like a cartel when pricing apartment rentals.

I don't quite see how the government is involved or maybe I'm missing something?
clobby
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ABATTBQ11
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javajaws said:

I think the only way the government has a case here is if the software uses private data from one customer to assist in setting prices for another customer. If instead, it relies only on publicly available data I see no chance the gov wins.

From reading the links above it does kind of sound like they are using both private data from other customers as well as public data so this should make for an interesting court case.

For their customers to willingly share their pricing and occupancy data with other customers via the software I would think a case could be made for collusion of some sort.

On the flip side, such software really has great benefit to the market as a whole as it is clearly pointing out a supply problem in housing in these markets where rates went up when used. In the long term this should help get them more housing built and thus lower monthly prices.


This may indeed be the case. In construction, at least, there are cloud project management and estimating platforms that aggregate user data to establish market averages for pricing, profitability, etc that users can have access to It's all anonymized, obviously, but it does have the effect of combining private data from many sources to drive or at least inform pricing decisions.

If this software works similarly and aggregates private data to establish pricing recommendations, then it is somewhat collusive. While pricing for open housing is advertised, pricing for rent increases in lease renewals is not. Combining private datasets utilizing that information is closer to car dealerships sharing all of their sales information to determine what their competitors are negotiating in terms of sale price, rebates, trade in, etc and not just the publicly started MSRP or sticker price.
FriscoKid
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https://finance.yahoo.com/news/hausfeld-berger-montague-lieff-cabraser-065900253.html

You are correct. I thought it was the FTC bringing the case. (Wonder if the government is helping though?)
No Spin Ag
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I remember hearing someone talk about this about a year ago; how corporations are getting into the housing/apartment with the intent to milk as much as they can. They also added that the lack of new starter homes being built is also helping those corporations because of lack of choices (i.e. competition) also hurt the consumer while helping the corporations.
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