ATLANTA – Atlanta has the highest number of rental properties impacted by price adjustment algorithms, according to a recent White House analysis on RealPage, a company under scrutiny by the Department of Justice.
The DOJ has accused RealPage of harming renters through its price-setting software, which uses algorithms to adjust rental rates. The White House noted that limited housing supply and reduced competition contribute to higher prices, with the issue particularly pronounced in Atlanta.
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In Atlanta, about three-fourths of available rental units are affected by RealPage’s algorithms, according to the report. Nationally, the company’s software is used in at least 10% of rental properties.
The analysis estimates that the pricing algorithms add about $181 per month to Atlanta renters’ costs, significantly higher than the $70 national average increase.
RealPage denies that its revenue management software is the issue and says that housing affordability is the real issue. They have devoted considerable space on their website to disputing various reports.
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Additionally, they released a statement in response to the report from the White House saying, “We are disappointed The White House CEA never contacted RealPage about their report, which is riddled with flawed assumptions.”
RealPage says that the White House’s conclusions were based on the “erroneous assumptions” that all property managers are setting coordinated rents.
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The company is correct in saying that affordable housing is a major concern for many Americans.
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