New State and Local Laws Drive Expansion of Algorithmic Rent-Pricing Litigation

Emergence of New Litigation Wave

A new wave of litigation is targeting multifamily housing landlords over violations of municipal regulations concerning algorithmic rent-pricing. This follows earlier federal, state, and private antitrust lawsuits against companies like RealPage and Yardi, and landlords using their revenue management products. The new regulations are providing a more direct route to establishing liability and imposing penalties.

Regulatory Landscape Shifts

States and municipalities have enacted laws specifically restricting the use of algorithms or price optimization software for sharing or recommending rents, concessions, lease terms, or occupancy levels. These laws often include provisions for both private rights of action and public enforcement mechanisms, which has fueled the increase in legal challenges.

Follow-on Claims and Precedents

Recent county-level actions in San Francisco, San Diego, Seattle, Philadelphia, and Providence, RI, indicate that plaintiffs and local governments are leveraging these new laws to file follow-on claims to the RealPage litigation. These new statutes are significant because they may offer a simpler path to liability than traditional antitrust claims and can authorize substantial statutory damages, fee shifting, and recurring per-unit penalties in some jurisdictions.

Illustrative Case: Gomez v. Greystar Management Services LLC

The emerging litigation strategy is exemplified by cases filed in July and August 2026. For instance, a San Francisco tenant filed Gomez v. Greystar Management Services LLC, alleging a violation of San Francisco Administrative Code § 37.10C. The lawsuit claims Greystar used RealPage and Yardi products in violation of an ordinance prohibiting landlords from using algorithmic devices that calculate nonpublic competitor information to advise on rent or occupancy. The ordinance allows for damages, injunctive relief, and civil penalties of up to $1,000 per violation for each month of use per affected dwelling unit.