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A resolution opposing algorithmic rental price fixing in Nashville and Davidson County and supporting investigations and lawsuits to end the practice.
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WHEREAS, access to affordable housing and fair and transparent rental housing prices is a critical issue for the residents of Nashville and Davidson County; and
WHEREAS, some residents must deal with elevated rental costs tied to algorithmic price fixing, which occurs when landlords exchange sensitive data with their competitors and use software algorithms to analyze that data and help determine rental rates; and;
WHEREAS, when landlords collude and use these methods to raise rents, it artificially constrains supply and further exacerbates the housing crisis in Nashville, Davidson County, and across the country; and
WHEREAS, software purchased by these landlords is used to access information, exchanges collect sensitive data, process that data to recommend rent increases, and create artificial scarcity by leaving a certain percentage of housing units vacant in an effort to boost landlord profits-a practice called "algorithmic price fixing"; and
WHEREAS, the problem is worsened due to the consolidation of rental units among a small number of large, institutional landlords; and
WHEREAS, the U.S. Department of Justice and the State of Tennessee, along with nine other states, have filed a lawsuit against RealPage, Inc. and six corporate landlords, alleging that this practice violates federal antitrust law by keeping rents artificially high across Tennessee and the United States; and
WHEREAS, an amended complaint claims that a large percentage of rental properties in Nashville participate in this practice. More than 30 percent of properties in Southeast Nashville, South Nashville, East Nashville, West Nashville, and near downtown Nashville allegedly used this problematic software to share non-public information to align and regulate pricing; and
WHEREAS, as the lawsuit states, this practice harms renters ...
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