The U.S. Justice Department has made a shocking accusation, revealing that six major landlords have been caught scheming to inflate rents, further deepening the housing crisis for American renters already struggling with soaring living costs.
The lawsuit filed by the Justice Department alleges that these landlords, operating more than 1.3 million units across 43 states and the District of Columbia, used an algorithm to manipulate rent prices and shared sensitive information with competitors to maximize their profits. This coordinated effort has led to inflated rents, squeezing millions of American families out of affordable housing options.
One of the most alarming statistics to emerge is the impact this has had on renters. In 2022, nearly half of American renters were forced to spend more than 30% of their income on rent and utilities—an all-time high. This financial burden leaves families choosing between basic necessities like medication, food, and school supplies. As a result, many are falling deeper into financial distress, leading to increased eviction notices and protracted court battles, with children often bearing the brunt of these hardships. According to Princeton University’s Eviction Lab, over 1.5 million people face eviction annually.
The most shocking detail, however, is the extent of these landlords’ collusion. The lawsuit outlines how these major firms shared sensitive data, including rent renewal rates, pricing strategies, and occupancy information, through emails, phone calls, and group discussions. By aligning their pricing schemes, they avoided competition that would typically drive rents down, putting profits far ahead of the basic needs of renters.
Sources:
https://www.arise.tv/us-justice-department-sues-major-landlords-over-alleged-rent-fixing-scheme/
https://www.baltimoresun.com/2025/01/07/six-major-landlords-high-rent-scheme/
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