22 March 2025
As the cost of everything from groceries to movie tickets in the U.S. seems to rise each day, housing prices are no exception. The cost of housing in the U.S. is not limited to prospective homeowners facing rising costs but also those seeking to rent. 49.7% of rentals in the U.S. are “cost burdened,” meaning that more than 30% of income goes towards housing costs [1]. Recently, the Federal Trade Commission (FTC) has taken action against large rental companies on the grounds of “junk fees,” which are costs of a good or service that are hidden from the consumer. Further, the Justice Department has filed a complaint against Realpage, a property management software company, as well as six apartment management companies for colluding to decrease competition in rental pricing [2]. Though the repercussions of these complaints are yet to be determined, this action against rental giants, or giants in any industry, is vital for ensuring fair pricing.
In January 2025, the FTC and the state of Colorado filed a civil lawsuit against Greystar. The suit alleges that Greystar—the largest apartment manager in the United States—falsely advertised lower rent prices and then required consumers to pay additional mandatory monthly fees that were not detailed prior to lease signage [3,4]. These fees take the form of $25 a month for a “valet trash service,” for example, and are not communicated to potential renters until “after they have filled out an inquiry form” or potentially paid application fees or deposits [5]. Further, if consumers realize the cost of these fees after an application has been filled out and approved, they are not refunded their holding or application fees. The official complaint claims that Greystar is in violation of the Colorado Consumer Protection Act as well as the Gramm-Leach-Bliley Act, which requires financial institutions to “explain their information-sharing practices” to consumers [6]. Further, the complaint states that these fees have cost tenants over $100 million in California, Colorado, Nevada, and Utah alone [7]. Greystar, which manages over 800,000 rental units and holds ownership interest in over 100,000 units, has been hit with several lawsuits in the past decade [8]. A 2019 lawsuit accused the company of illegally collecting personal information about renters, while in 2022, a renter sued the company for failing to perform urgent building maintenance resulting in water pooling in several apartments [9].
Mallory Rutkoske, a former tenant of a Greystar property in Utah, details her experience being charged hundreds in unexpected fees following her move-out. When she inquired about the reason for the invoice, the property manager said that it was to pay a cleaning company; however, Rutkoske asserts that “the cleaning fee, specifically, was not in the rental contract” [10]. This practice of hidden fees is widespread throughout the company’s properties. Scrolling through Google reviews of One on Center, a Greystar-managed property that caters to University of Pittsburgh and Carnegie Mellon Students, reveals a similar pattern. Reviews echo similar fee concerns of being denied their deposits, charged for unfounded damage fees, and ignored when they brought their concerts to management. As one review writes, “apparently, the only thing they are good at is exploiting their tenants” [11]. Greystar has not yet officially filed a court response but did counter the complaint in a statement, asserting that not listing fees on the advertised price is standard practice in the industry, continuing, “The idea that this is done with the goal of hiding fees from consumers is patently false” [12].
Another important accusation against the rental unit giant is their alleged part in communication with competitors, using RealPage consumer data and “algorithmic pricing” to monitor and set prices [13]. Doha Meki, former Acting Assistant Attorney General of the Justice Department’s antitrust division stated that the accused rental companies “shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high [14].” The six companies—Greystar, LivCor, Camden, Cushman, Willow Bridge, and Cortland—which collectively own around 1.3 million rental units, used Realpage’s anti-competitive price algorithms that ensured high rent and harmed consumers [15]. RealPage’s algorithm sets dynamic pricing for units based on features, availability, and other factors, allowing rents to fluctuate to demand dynamically. This harms renters by setting recommended prices based on data, coming from multiple different companies, about availability in a certain area [16]. Additionally, such forms of coordination are in violation of the Sherman Act, the foundation of antitrust law that prohibits the limitation of competition and trade through companies conspiring together [17]. Further, executives at Greystar and Camden Property Trust directly communicated about sensitive topics including renewal rates and pricing approach to decrease competition and keep rents artificially raised. As of January 2025, this complaint remains unresolved; however, one company, Cortland, has agreed to cooperate and enter into a settlement with the Justice Department, which includes stipulation requiring the company to stop the use of algorithmic pricing without outside monitors or disclosing sensitive information to competitors [18].
The idea that multi-billion dollar companies are exclusively fostering innovation and lower prices by competing with each other for the consumer’s attention is now clearly a bit dated. Examples of executives colluding, with or without algorithms, to set prices that do not benefit the consumer are not shocking or unique. In many industries, a small number of companies hold dominant amounts of the market share and can thus leverage their power against competitors or work directly with them. For example, the merged Ticketmaster and Live Nation hold over 80% of the market share in online ticket sales, resulting in little opportunity for competition, even if consumers would prefer it [19].
Stronger antitrust monitoring and enforcement is required in all industries so that companies cannot continually work to set prices and policies in a manner that benefits only themselves at the expense of consumers. The very existence of junk fees and renters feeling trapped without alternatives is indicative of a not truly competitive environment. While under the jurisdiction of Lina Khan, the former chair of the FTC, these complaints against anti-competitive behavior in the housing market, as well as in private equity and several other industries, were brought to the surface. Khan is no longer chair of the FTC under the Trump administration, leading to questions regarding what direction the agency will take in the future [20].
The newly appointed chair, Andrew Ferguson is anticipated to conduct antitrust enforcement with a “lighter touch.” Though there are still questions, it is expected that the new FTC administration will “be more favorable to businesses” with previously blocked deals being reconsidered [21]. Greystar and RealPage’s activity in the rental market is just one example where consumers have the illusion of choice between a few industry giants, rendering them relatively defenseless against higher prices and exploitative practices. Without tough action on antitrust enforcement, lower prices on essential goods will continue to be a fictional promise.
Image via Pexels Free Photos
Works Cited
[1] Beshay. 2024. “A Look at the State of Affordable Housing in the U.S.” Pew Research Center, October 25, 2024. https://www.pewresearch.org/short-reads/2024/10/25/a-look-at-the-state-of-affordable-housing-in-the-us/
[2] Justice Department Sues Six Large Landlords for Algorithmic Pricing. 6 Feb. 2025, www.justice.gov/archives/opa/pr/justice-department-sues-six-large-landlords-algorithmic-pricing-scheme-harms-millions.
[3] Nylen, Leah, Josh Sisco, and Patrick Clark. 2025. “FTC, Colorado Sue Greystar Over Apartment Rental ‘Junk Fees’.” Bloomberg Law, January 16, 2025..https://news.bloomberglaw.com/us-law-week/ftc-sues-greystar-over-junk-fees-charged-to-apartment-renters
[4] “2024 Top Managers List.” n.d. https://www.nmhc.org/research-insight/the-nmhc-50/top-50-lists/2024-top-managers-list/
[5] “FTC, State of Colorado Take Action Against Greystar, Nation’s Largest Multi-Family Rental Property Manager, for Deceiving Consumers About Rent Prices.” 2025. Federal Trade Commission. January 16, 2025..https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-state-colorado-take-action-against-greystar-nations-largest-multi-family-rental-property-manager
[6] U.S. Congress. 1999. Gramm-Leach-Bliley Act. Public Law 106-102. Statutes at Large 113:1338.
[7] Carlisle, Nate. 2025. “FOX 13 News Utah (KSTU).” FOX 13 News Utah (KSTU), January 18, 2025.https://www.fox13now.com/news/fox-13-investigates/utah-figures-big-in-suit-over-greystar-apartments-hidden-fees
[8] Deal, Real. 2020. “Greystar Probed Tenants’ ‘Character,’ ‘Reputation,’ ‘Rental History,’ Lawsuit Claims – GPAM.” GPAM. May 26, 2020. https://globalpropertyinc.com/2020/05/26/greystar-probed-tenants-character-reputation-rental-history-lawsuit-claims/
[9] Monreal, Jane. 2022. “‘A Lackadaisical Approach From Management’ | Charlotte Tenant Files Lawsuit Against Luxury Apartment for Poor Maintenance.” Wcnc.Com, November 17, 2022. https://www.wcnc.com/article/money/charlotte-tenant-lawsuit-luxury-apartment-poor-maintenance-management/275-1a058707-8fc7-4919-a63b-b0941266b033
[10] Carlisle, Nate. 2025. “FOX 13 News Utah (KSTU).” FOX 13 News Utah (KSTU), January 18, 2025.https://www.fox13now.com/news/fox-13-investigates/utah-figures-big-in-suit-over-greystar-apartments-hidden-fees
[11] “One on Center.” Google Reviews. Accessed February 26, 2025. https://www.google.com/search?q=google+reviews+one+on+center#lrd=0x8834f2309e5962ab:0x53e3ddb949765fb8,1
[12] Carlisle, Nate. 2025. “FOX 13 News Utah (KSTU).” FOX 13 News Utah (KSTU), January 18, 2025.https://www.fox13now.com/news/fox-13-investigates/utah-figures-big-in-suit-over-greystar-apartments-hidden-fees
[13] Justice Department Sues Six Large Landlords for Algorithmic Pricing. 6 Feb. 2025, www.justice.gov/archives/opa/pr/justice-department-sues-six-large-landlords-algorithmic-pricing-scheme-harms-millions.
[14] Ibid.
[15] Ibid.
[16] Vogell, Heather. 2025. “DOJ Sues Large U.S. Landlords Over Alleged Price-Fixing.” ProPublica, January 11, 2025. https://www.propublica.org/article/justice-department-sues-landlords-alleged-price-fixing-realpage-rent.
[17] Example: Federal Trade Commission. “Guide to Antitrust Laws.” Accessed February 26, 2025. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/antitrust-laws.
[18] Justice Department Sues Six Large Landlords for Algorithmic Pricing. 6 Feb. 2025, www.justice.gov/archives/opa/pr/justice-department-sues-six-large-landlords-algorithmic-pricing-scheme-harms-millions.
[19] Cohan, Peter. 2024. “Ticketmaster Lawsuit Slows Live Nation Stock as Sales Expectations Dip.” Forbes, May 28, 2024. https://www.forbes.com/sites/petercohan/2024/05/27/post-lawsuit-live-nation-entertainment-stock-flat-as-sales-seen-up-5/#:~:text=On%20Jan.,%25%20share%2C%20not%20the%20Journal.
[20] Green, Hannah Harris. 2025. “Trump Has Promised to Lower Prices. It Will Be Impossible Without Private Equity Reform.” Slate Magazine, February 10, 2025. https://slate.com/business/2025/02/private-equity-donald-trump-steve-feinberg-kushner-lina-khan-ftc.html
[21] Rugaber, Christopher. 2024. “Trump Names Andrew Ferguson to Head the Federal Trade Commission.” PBS News. December 10, 2024. https://www.pbs.org/newshour/politics/trump-names-andrew-ferguson-to-head-the-federal-trade-commission.
Policy & Political Review 