…Biden-Harris or their Administration. It’s certainly not persistent “inflation” driven by Democrats as the GOP keep falsely whining about. No, plain and simple, it is Corporate America that is to blame. And here is just one prime example that corporate executives are in so many ways behind the U.S.’s painful price-gouging schemes upon ordinary, struggling Americans.
On a summer day back in 2021, some real estate tech gurus and executives gathered at a Nashville, TN conference hall to gloat and boast about their #1 selling product: software that utilizes a specialized algorithm to assist any and all U.S. landlords to acquire the highest possible rents on tenants. Their meeting in Nashville was by no accident during one of our country’s worst pandemics, and American deaths by it, than ever recorded in our nation’s 248-year history. The vast ripple-effects of the COVID-19 pandemic threw not only the U.S. economy into a nose dive, but also the rest of the world. The affects of the pandemic cannot be overstated.
Yet, during our country’s ongoing devastation by an invisible COVID enemy, the top brass of RealPage, Inc., flaunted their massive wealth and orbital profits and revenues by its YieldStar software, as well as the near mercurial profit successes by their 32,000+ landlord clients in the middle of a severe economic recession.
“Never before have we seen these numbers,” said Jay Parsons, a vice president of RealPage, as conventiongoers wandered by. Apartment rents had recently shot up by as much as 14.5%, he said in a video touting the company’s services. Turning to his colleague, Parsons asked: What role had the software played?
“I think it’s driving it, quite honestly,” answered Andrew Bowen, another RealPage executive. “As a property manager, very few of us would be willing to actually raise rents double digits within a single month by doing it manually.”— RealPage, Inc., Jay Parsons & Andrew Bowen, ProPublica.org, accessed online 9/3/2024
Across the nation rent was up 9% in September 2022. But before you get excited, it didn’t take long for rent increases to go back to double digits, especially during the latter stages of the COVID-19 pandemic. Yes, double digits as we were finally coming out of the worst parts of COVID landlord real estate groups raised and raised their rents. And yes, there are several factors that honestly cause rising rent like an economy heading for recession, supply and demand, and/or high mortgage interest rates. However, an investigation by ProPublica.org found another big player: the rental pricing software YieldStar owned and sold by RealPage, Inc.
How RealPage’s Rent-Gouging Algorithm Works
Gathering enormous amounts of data from their clients, many whom are the largest real estate conglomerates in the nation with over tens of thousands of rental units, RealPage states its algorithm stores “lease transaction data” for almost 14-million units across the U.S. Every single day the software encourages a new rent price for every unleased unit. The following day the rate-cycle repeats rarely going down.
To determine the new rate, it draws from competitor data on the actual rent tenants paid, as opposed to the publicly advertised rent.
The use of private competitor data — though it is aggregated and anonymized — to set prices is one of the concerns experts raised. The practice could allow RealPage to stifle rental competition, they said, driving up rents across the country and, potentially, even violating antitrust laws. Experts said that RealPage also sponsors meetings that gather competitors together to talk about pricing, which could also be a warning sign of collusion.— Sophia Kovatch, ProPublica.org, accessed 9/3/2024
Kovatch lists five things about RealPage’s YieldStar software that significantly affects renters across the United States. I will only list the bullet-points here, but if you are interested in the details of the rent-gouging software I strongly recommend you read the above article(s) at ProPublica.org. The five key points:
- Landlords use RealPage to make a lot more money/profits.
- RealPage believes it is driving rents higher across the country.
- RealPage discourages landlords from bargaining with tenants over rents.
- Critics say RealPage may encourage pricing collusion among landlords.
- RealPage says it uses data in a “legally compliant” way.
At the 2021 real estate convention in Nashville, TN, during COVID-19 the gloating and celebrating was more than just common swagger. Over several years RealPage has received feedback from property managers everywhere in the U.S. overly elated with how the YieldStar software has put their profits on steroids and through the roof.
Therefore American voters, this November remember the actual facts regarding the real causes for millions upon millions of struggling middle-class (and below) American citizens who are still barely making ends meet since January 2020. The previous administration in the White House and Congress more than cozied up to Corporate America. Remember the actual factual track-record that shows the Biden-Harris administration has in reality saved America from the downward spiraling trajectory the Orange Orangutan Baby and his MAGA radicals in Congress were leading us down. Also remember what political party is always in bed with corporate interests and always makes Corporate America’s revenues/profits top priority at the expense, the sacrifice of middle- and lower-class Americans barely getting by… paycheck to paycheck.
As I read many sources of opposing views about the condition of the American economy between January 2020 (the start of COVID-19) to the present day, one theme stood out: political finger pointing. The tactics (GOP especially) really do no middle-class or lower-class Americans any good. What “good” might come from the distorting, polarizing rhetoric is the lack of empathy and the recognition of the lack of congressional hard work in favor of ordinary Americans and their benefit through very hard times.
Question: When is it ever good, in this Land of Liberty, Freedom, and Equality, for some Americans to suffer worse than others at the hands of corporate price-gouging in groceries, fuel costs, utility costs, stagnate or slipping wages, and housing? Why does one sector of Americans get to exploit the misfortunes and disadvantages of other Americans… for their own self-interests and corporate riches? I know that answer, do you?
— Further reading:
Pressure Grows on Real Estate Tech Company Accused of Colluding With Landlords to Jack Up Apartment Rents
100-Days of the Biden-Harris Administration and Its Successes
The Moody’s Analytics Evaluation of Presidential Candidates
The Professor’s Convatorium © 2023 by Professor Taboo is licensed under CC BY-NC-ND 4.0
The Professor's Convatorium 