The Blubber

Utah renters could feel the effects of a lawsuit filed by the U.S. Department of Justice, which accuses major property management companies of using an AI-driven pricing tool to inflate rents.

The amended DOJ complaint names six large landlords, including one with rental units in Utah. The lawsuit alleges that the software gathered sensitive pricing data from companies using it and then allowed them to set rents based on competitors’ pricing.

According to the DOJ, the tool was designed to continuously increase rents, maximizing profits for landlords at the expense of fair market competition.

DOJ Investigation

The DOJ’s investigation concluded that the RealPage software violated free market principles by creating an anti-competitive environment.

“We should be cracking down and regulating these kinds of practices when they distort the market,” said Sen. Nate Blouin, D-Millcreek.

Blouin emphasized the growing role of AI in business and the need for oversight.

“We’re going to see AI used more and more in the coming years… The state needs to be very aware of its impact,” he said.

He also noted that many Utahns are not yet fully aware of how AI-driven pricing models are shaping the housing market.

The investigation found that over 4.5 million rental units across the U.S. may have been affected, including properties in Salt Lake City, Midvale, Sandy, and Draper.

Property Management Response

Greystar, one of the nation’s largest property management companies and the operator of Astra Tower in downtown Salt Lake City, responded to the lawsuit’s claims in a written statement to KSL-TV.

“We are disappointed that the DOJ added us and other operators to their lawsuit against RealPage. Greystar has and will conduct its business with the utmost integrity,” the statement read. “At no time did Greystar engage in any anti-competitive practices. We will vigorously defend ourselves in this lawsuit.”

Governor’s Office Focuses on High Rent Solutions

For many state leaders, increasing homeownership is seen as the best way to drive competition and stabilize housing costs.

“The goal is to have a free and fair market that provides opportunities for everyone in Utah to prosper,” said Steve Waldrip, Senior Advisor for Housing Strategy to Gov. Spencer Cox.

Waldrip emphasized that expanding homeownership is a key focus for the governor’s office, though implementing solutions remains a challenge.