There are times when MHProNews begins preparing an article on a topic that gets ‘bumped’ for another topic. The following article began as such a drafted item several weeks ago, based in part on information from Senator Elizabeth Warren (MA-D) press release. A check this morning to see if the Manufactured Housing Institute (MHI) has addressed this issue via a Google search suggests that they have ignored this issue, at least publicly. Given that this issue touches upon issues that connect to entities that have interests in manufactured housing and that the conceptual principles involved in this Democratic inquiry arguably apply to several MHI linked brands and some others too, MHProNews made the editorial decision to advance this issue as it is still relevant. Typically, an evidence-based case can be made that when MHI ignores a subject their related and supposedly independent publications do the same.
With that brief tee up, here in Part I are the elements of the demand for information related to the Department of Justice RealPage case, previously reported by MHProNews.
Equity Residential in Warren-Markey-Moulton Demand Letter
Brookfield Properties
Cushman and Wakefield
Part I
September 19, 2024
Warren, Markey, Moulton Demand Answers From Corporate Landlords in Massachusetts Allegedly Using Rent-Hiking Algorithm
Lawmakers push landlords to cut ties with RealPage, company behind software allegedly used to share proprietary data and hike rents
Washington, D.C. – U.S. Senators Elizabeth Warren (D-Mass.) and Ed Markey (D-Mass.), and Representative Seth Moulton (D-MA-06), today demanded answers from 13 corporate landlords operating in Massachusetts, asking these companies whether they are using RealPage’s algorithm to raise rents for Massachusetts families.
Last month, the Department of Justice and attorneys general in eight states filed a major antitrust lawsuit alleging that RealPage’s software enabled landlords to collude to raise rents and accusing RealPage of monopolizing the market with its rent-setting software.
The lawmakers sent the letters to the following companies: Greystar, Bozzuto Group, Avalon Bay, Equity Residential, UDR, Bell Partners, AIR Communities, Related Companies, Gables Residential, Cushman and Wakefield, Brookfield Properties, WinnResidential, and Lincoln Property.
“Massachusetts is in the midst of a housing affordability crisis; rents in the Commonwealth are currently the highest in the country. In the midst of this crisis, we are extraordinarily concerned that corporate landlords are taking advantage of renters in Massachusetts, gouging them with illegal price-fixing schemes,” wrote the lawmakers.
A 2022 investigation into RealPage led by Senator Warren found evidence that some of the largest corporate landlords were sharing proprietary information with RealPage, whose software appeared to be “facilitating de-facto price setting and driving rapid [rent] inflation.” The recent Justice Department lawsuit revealed even more information about RealPage’s alleged price-fixing scheme.
In the new letter, the lawmakers pushed the companies to cut ties with RealPage and stop using the company’s software. The lawmakers also highlighted the real-life impacts of RealPage’s harmful tactics on renters in Massachusetts and beyond.
“In 2022, a vice president of RealPage touted that apartment rents had increased by over 14.5%, stating ‘I think [the software is] driving it, quite honestly.’ In Seattle, rents rose by 33% in a RealPage-priced building over the course of 2021, while they rose by 3.9% in a comparable building that didn’t use the algorithm. For renters across the country and in the Commonwealth, RealPage’s tools are alleged to have enabled landlords to hike rents well above fair market value in the midst of a statewide and national affordable housing crisis,” wrote the lawmakers.
Senator Warren has long led the fight to make housing more affordable for families and has held companies accountable for their role in exacerbating housing costs:
- In August 2024, Senators Warren (D-Mass.) and Catherine Cortez Masto (D-Nev.), sent letters to each of the 11 Federal Home Loan Banks (FHLBanks) urging them to contribute at least 20% of their net income to affordable housing and other critical community grant programs.
- In July 2024, Senators Warren and Raphael Warnock (D-GA), and Representative Emanuel Cleaver (D-MO-5) reintroduced the American Housing and Economic Mobility Act, the landmark legislation to tackle the housing crisis, bring down costs for renters and buyers, and help working families everywhere find a decent place to live at a decent price.
- In July 2024, Senator Warren and Representative Sara Jacobs led Senator Tim Kaine, Senator Jon Ossoff, Representative Ro Khanna, and Representative James Moylan in calling out the Department of Defense (DoD) for failing to protect military families living in military housing operated by private companies under the Military Housing Privatization Initiative (MHPI).
- In June 2024, Senator Warren sent a letter to the Federal Housing Finance Agency (FHFA) urging the agency to address our country’s affordable housing crisis by reforming the broken Federal Home Loan Bank (FHLB) System.
- In May 2024, Senator Warren reintroduced the Public Housing Emergency Response Act to address the estimated $70 billion backlog of maintenance and repairs in our nation’s public housing, which would allow tenants to live in safe conditions and ensure that, as we fight to end the housing crisis by expanding the supply of affordable housing, we are not losing existing units to disrepair.
- In April 2024, At a hearing of the Senate Banking, Housing, and Urban Affairs Committee, U.S. Senator Warren called out the Federal Home Loan Banks (FHLBs) for failing to deliver on their mission to provide affordable housing as the country faces a housing crisis.
- In January 2024, Senator Warren, John Hickenlooper, Jacky Rosen, and Sheldon Whitehouse sent a letter to Federal Reserve (Fed) Chair Jerome Powell, calling on the Fed to reverse its troubling interest rate hikes that have driven mortgage rates to 20-year highs and have put affordable housing out of reach for too many Americans.
- In March 2023, Senators Elizabeth Warren, Ed Markey, Tina Smith, and Bernie Sanders sent a letter to Jonathan Kanter, Assistant Attorney General of the Antitrust Division at the Department of Justice (DOJ) calling for the DOJ to investigate YieldStar following new findings from their investigation of RealPage’s YieldStar product.
- In January 2023, Senator Warren, and Representative Jamaal Bowman led a letter with 48 lawmakers, urging President Biden to use every tool he has to address rent inflation, end corporate price gouging in the rental market, and ensure that renters and people experiencing homelessness across this country are stably housed this winter.
- In November 2022, Senators Warren, Tina Smith (D-Minn.), Bernie Sanders (I-Vt.) and Edward J. Markey (D-Mass.) sent a letter to RealPage CEO Dana Jones, expressing concern about RealPage’s algorithmic pricing software, YieldStar, and its role in driving rising rents and exacerbating inflation.
- In August 2022, at a Senate Banking, Housing, and Urban Affairs (BHUA) Committee hearing, Senator Warren called out corporate landlords’ growing role in the rental market and emphasized the need for a Tenant Protection Bureau to hold corporate landlords accountable and protect renters from extreme rent hikes, illegal eviction, and other predatory practices.
- In May 2022, Senators Warren and Reed sent a letter to Secretary of the Department of Housing and Urban Development (HUD), Marcia Fudge, calling on HUD to preserve homeownership affordability for American families as Wall Street firms expand their activity in the housing market.
- In March 2022, at a BHUA Committee hearing, Senator Warren called out Wall Street’s role in worsening the housing affordability crisis for seniors by buying up manufactured home communities
- In February 2022, Senator Warren called out private equity firms and other big investors for exacerbating inflation and locking families out of affordable housing opportunities.
- In January 2022, Senator Warren sent letters to the CEOs of three private equity-backed firms—Progress Residential, American Homes 4 Rent, and Invitation Homes —calling out their growing activity in the housing market that has resulted in rent hikes and unaffordable homes for first-time buyers.
- In August 2021, during a hearing exchange with Senator Warren, a Department of Housing and Urban Development nominee committed to consider changes that facilitate sales of distressed homes to homeowners, not private equity firms.
- In July 2021, Senator Warren called on large corporate landlords to avoid needless evictions as the CDC eviction moratorium neared expiration.
- In May 2021, at a hearing, Senator Warren made the case for her American Housing and Economic Mobility Act, which would create a new housing innovation grant program to reduce exclusionary local zoning laws.
- On April 2021, Senator Warren and Representative Emanuel Cleaver, II (D-Mo.) reintroduced the American Housing and Economic Mobility Act to bring down the costs for renters and buyers, level the playing field so working families can find a decent place to live at a decent price, reduce exclusionary zoning laws, and take a step towards addressing the effects of decades of housing discrimination on communities of color.
- In May 2019, Senator Warren and then-Representative Dave Loebsack (D-Iowa) wrote to the private equity firms behind some of the country’s largest manufactured housing communities to request information about their use of predatory practices to boost profits in the communities they own.
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Part II – Additional Information with More MHProNews Analysis and Commentary
1) As was noted in the preface, and was detailed in the article linked below, the RealPage case apparently has certain similarities with the antitrust actions involving several MHI members and/or members of MHI linked state associations.
2) It should be recalled that Vice President-Elect (Senator) J.D. Vance (OH-R) has said favorable things about some of the antitrust steps taken by Biden-Harris antitrust officials. To illustrate that, consider this Q&A with left-leaning Bing’s AI powered Copilot.
During the recent general election campaign, isn’t it true that Senator J.D. Vance, now vice president-elect Vance, made favorable comments about Biden-Harris era antitrust officials?
Yes, during the recent general election campaign, Senator J.D. Vance, now vice president-elect, did make favorable comments about Biden-Harris era antitrust officials. Specifically, he praised Federal Trade Commission Chair Lina Khan for her work on antitrust enforcement. This is notable given the typically partisan nature of such discussions.
3) These follow ups are important. The first one is as shown below.
More recently, there are rumors and indications that the Trump transition team will be placing tough antitrust enforcers in key roles, is that accurate? Give some details.
This shift is expected to bring significant changes to U.S. antitrust policy, potentially impacting future policy on mergers and monopolistic practices. The new administration’s approach may differ from the previous administration’s, with a focus on more stringent enforcement. …
4) Next, was this question.
There have been reports on MHProNews and MHLivingNews on antitrust concerns raised within and impacting the manufactured housing industry, isn’t that right? Provide details.
For instance, a recent article on MHProNews discusses two class action antitrust suits filed against high-profile MHI members and state affiliate members. The lawsuits allege that these companies conspired to fix, raise, and systematically inflate mobile home lot rental prices across the United States.
Another report details a large antitrust lawsuit involving several MHI members, including major manufactured home community owner/operator companies and a mobile home market data provider. The lawsuit claims that these companies used non-public market data to exchange pricing information and devise rent increases.
These reports underscore the ongoing legal and regulatory scrutiny faced by the manufactured housing industry, particularly concerning anticompetitive practices and market manipulation.
: :
5)
For the most part, the Manufactured Housing Institute and/or their related bloggers and trade media have downplayed or ignored the antitrust cases and allegations involving monopolistic practices impacting the manufactured home industry and its consumers, isn’t that right? Provide details.
You’re correct. There have been reports suggesting that the Manufactured Housing Institute (MHI) and related trade media have downplayed or ignored antitrust cases and allegations involving monopolistic practices within the manufactured housing industry.
For example, MHProNews and MHLivingNews have reported on several class action antitrust lawsuits involving high-profile MHI members. These lawsuits allege that companies conspired to fix, raise, and systematically inflate mobile home lot rental prices across the United States. Despite the significance of these cases, there has been limited coverage or acknowledgment from MHI and its affiliated media outlets.
This lack of transparency and accountability can be concerning for consumers and investors who rely on accurate information to make informed decisions. It highlights the need for independent reporting and scrutiny to ensure that monopolistic practices are properly addressed and consumers are protected. …
6) So, it would not be a shock if the incoming Trump-Vance administration takes a more hands on approach to antitrust efforts. The fact that Democrats won’t be in charge of the House, Senate or White House and federal bureaucracy may not diminish the issues raised by Democratic lawmakers Warren, Markey and Moulton. To learn more, see the linked reports. Stay tuned.
Postscript. MHI has finally updated a section of their website that will be unpacked by MHProNews in the days ahead. Stay tuned for that report with analysis. More on manufactured housing industry underperformance during an affordable housing crisis and what team Trump could do to change that dynamic is available in the reports linked above and below. Stay tuned for another spotlight on a MHI member community operator that has drawn fire. Also stay tuned for a new third-party research report on manufactured housing.
that the industry ought to expect this current downturn because more expensive site-built housing is also in a downturn? MHI’s research and reasoning are arguably a classic example of PALTERING and the use of a RED HERRING logical fallacy. Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection, you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts.
Reminder. The Manufactured Housing Association for Regulatory Reform (MHARR) said in a message to MHProNews that they look forward to working with Trump’s HUD nominee Eric Scott Turner for the full implementation of the 2000 Reform Act. More to come. ##
An hour or so of reading a day can make the realities of your life and options and obstacles clearer. That’s a fraction of what Warren Buffett reportedly does in reading. No one connects the dots in MHVille like MHProNews and MHLivingNews. Who says? Competitors. Manufactured home industry outsiders, but also from MHVille insiders. But we have also added insights from AI fact checks and analysis, see the report linked here as an example. https://www.manufacturedhomepronews.com/artificial-intelligence-answers-why-manufactured-housing-has-underperformed-in-21st-century-during-affordable-housing-crisis-facts-analysis-plus-sunday-weekly-mhville-headlines-r/
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By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
Related References:
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