Kentucky Sues RealPage Over Alleged Rent Price-Fixing Amid Soaring Housing Costs

FRANKFORT, KENTUCKY — The Commonwealth of Kentucky is taking legal action against RealPage and a coalition of major real estate firms, alleging a coordinated effort to artificially inflate rents across the state’s multifamily housing market — even as construction approvals surged nearly 100% in 2022.

The lawsuit, filed by Attorney General Russell Coleman in the Eastern District of Kentucky, names RealPage Inc. and over a dozen prominent property management companies as defendants. It accuses them of violating federal and state antitrust laws by using proprietary software and data-sharing agreements to fix rental prices.

“Building into a rigged market will not deliver lower rents,” the attorney general’s office stated in its announcement of the lawsuit.

Massive Construction Boom, But Rent Still Rises

Kentucky experienced the third-largest increase in multifamily housing construction in the nation in 2022, with a 97.7% jump in approvals, according to data cited by the state. But despite the building boom, rent burdened households grew to 47%, meaning nearly half of renters spend over 30% of their income on housing.

The state argues that price-fixing behavior by RealPage and its associates nullified the effects of increased housing supply by keeping rents artificially high.

What the Lawsuit Claims

The 50-page complaint outlines a sweeping conspiracy between RealPage — a Texas-based property management tech company — and some of the largest landlords in the U.S., including:

• BH Management Services

• Greystar Real Estate Partners

• Mid-America Apartments

• First Communities Management

• Willow Bridge Property Co.

• And several others

The lawsuit claims RealPage used algorithmic pricing tools and data exchanges to “facilitate collusion” across competitive markets — suppressing price competition and squeezing renters, particularly in regions like Kentucky where demand for housing is high.

Damages Sought

Attorney General Coleman is seeking:

• Injunctive relief to stop RealPage’s practices

• Civil penalties for each violation

• Financial damages to compensate impacted renters

• A jury trial

Kentucky joins a growing number of states — including Arizona and Washington D.C. — that have launched or joined lawsuits against RealPage, following investigative reports and federal scrutiny of rent-setting software used across millions of rental units.

Growing Pressure on Big Landlords

RealPage has come under fire in recent years for its YieldStar software, which critics claim encourages landlords to raise rents in tandem, even in markets where competition should drive prices down.

A ProPublica investigation in 2022 helped ignite broader concern that rent tech tools may be facilitating illegal collusion, making it harder for working-class renters to find affordable housing — especially in fast-growing states like Kentucky.

Have you seen rent hikes in your Kentucky neighborhood that seem out of step with supply? Let us know in the comments — your insight helps us tell the full story at SaludaStandard-Sentinel.com.