Democrats are increasingly targeting price fixing in rental software.
In her first major politically motivated speech as a presidential candidate this year, Vice President Kamala Harris promised to crack down on algorithms and price-fixing software that drive up rents.
“I know how to fight for people who are exploited in the housing market,” she said, referring to her time as Attorney General in California.
Coincidentally, Harris’ hometown of San Francisco is the first city in the country to pass a law banning such software, and the issue has become a talking point in the mayoral election there. Lawmakers in New York and New Jersey have also proposed similar legislation.
The issue became a hot topic following a ProPublica investigation, class action lawsuits against RealPage, and an ongoing Justice Department investigation. At the heart of this frenzied activity is the allegation that companies like RealPage and Yardi encourage landlords to raise rents by making rental price recommendations based on other landlords’ prices. These and similar companies have rejected that notion, claiming that rents are determined by multiple factors rather than some sort of conspiracy of landlords conspiring to artificially raise rents. Politico reported last month that the Justice Department has recommended a civil lawsuit against the companies.
But what happens if the Justice Department does not conclude that this software violates antitrust laws, or decides not to file civil lawsuits against these companies? As unlikely as that outcome may be, what happens to these laws then? Will they face legal challenges before the Justice Department lawsuits or class action lawsuits are resolved? This seems to be getting complicated. If you have any ideas, please chime in!
What we think about: The new rules for settling with the National Association of Realtors go into effect tomorrow. How are you coping? What are you watching for in terms of the short- and long-term impact on Realtors? Send a note to [email protected].
One thing we learned: It looks like the vibrancy of the viral “Pink House” in Hamilton, NJ, has been toned down. Images from the listing show a noticeably less pink upstairs. The list price has also dropped by $20,000. Was it all a ruse? Did people not appreciate the color palette? I should know!
Elsewhere in New York …
– Mayor Eric Adams and his campaign received subpoenas in July related to his campaign’s 2021 fundraising efforts, the New York Times reports. The subpoenas requested text messages and other communications related to the mayor’s travel and other matters.
— A new report from the Independent Budget Office found that the city could save $42 million every two years if it held all municipal elections in even-numbered years, City & State reports.
— State officials plan to add the Atlantic leopard frog, native to Staten Island, to the endangered and threatened species list, Gothamist reports. The American eel, found in the Hudson River and on Long Island, will also be added to the list.
Closing time
Reside: The most expensive residential real estate sale on Wednesday was at 20 East End Avenue for $9.2 million. The Upper East Side condo is 4,700 square feet and is being offered by Jennifer Reardon, Leighton Candler, Jodi Stasse, Julia Kay Goodman and Rachel Brandeis of the Corcoran Group.
Commercially: The largest commercial sale of the day was at 440 Broadway in Soho for $8 million. In April, a foreclosure on the property was filed against Thor Equities for $13.3 million. The 9,000-square-foot building has been home to a Foot Locker store since 2013.
New on the market: The highest price for a residential property on the market was $25.9 million at 235 West 11th Street in the West Village. The townhouse has six stories and is nearly 6,000 square feet. Matthew Lesser, Matthew Pravda, Tori Landon and Michael Pinchasick of Leslie J. Garfield have the listing.
Groundbreaking ceremony: The largest building application was for a 12,500-square-foot building at 2952 West 28th Street in Brooklyn. The applicant was Andrew Knox of ESKW/Architects. – Joseph Jungerman
