Senators Call for Investigation into RealPage Algorithm’s Impact on Military Housing Costs

A coalition of U.S. Senators, led by Senator Elizabeth Warren (D-Mass.) and Senator Ruben Gallego (D-Ariz.), has urged the Department of Defense (DoD) to investigate whether landlords are utilizing RealPage’s property management software to artificially inflate rents for military families. According to a statement from the senators, this practice could be allowing landlords to exploit taxpayer-funded housing allowances meant to support servicemembers.

The letter, addressed to DoD Secretary Pete Hegseth, was signed by multiple senators, including Richard Blumenthal (D-Conn.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), and others. Per a statement from the group, their concerns stem from longstanding issues related to landlords adjusting rents based on the Basic Allowance for Housing (BAH), rather than genuine market conditions.

In 2023, the DoD allocated $24 billion toward BAH to assist servicemembers in securing private housing. However, a recent study suggested that it is common for landlords to set rental prices directly in line with the BAH rates for specific ranks, effectively neutralizing any financial benefit servicemembers might receive from periodic increases in housing allowances.

The senators’ letter highlights concerns that RealPage’s algorithm-driven pricing tools could exacerbate these issues. According to a statement, RealPage’s services may facilitate the exchange of proprietary rental data among landlords, potentially leading to coordinated rent hikes that disadvantage military families. The Department of Justice (DOJ) and multiple state attorneys general have already accused RealPage of contributing to excessive rental costs in several cities where BAH was increased, including Houston, San Diego, Spokane, and Wilmington.

Additionally, Florida has launched an investigation into whether RealPage’s practices violate antitrust laws, particularly as military housing costs surged in Miami, West Palm Beach, Volusia County, and Fort Myers Beach in 2022 and 2023.

Beyond financial concerns, rising housing costs are also affecting military recruitment and retention. Per the senators’ letter, increasing rental prices have forced families into difficult living situations, including delaying moves or settling in lower-quality housing. Unlike civilian families, military families experience frequent relocations, limiting their ability to secure stable housing at reasonable costs.

A recent Government Accountability Office report underscored the negative consequences of high housing costs on servicemembers, including increased debt burdens and longer commutes. “The Department of Defense has a responsibility to protect military families from predatory private housing companies and ensure that taxpayer dollars meant for military families are not being pocketed by unscrupulous landlords,” the senators wrote in their letter.

The lawmakers have requested that the DoD provide information on whether RealPage’s algorithm is contributing to artificially high housing prices for military families by February 13, 2025.

Senator Warren has previously championed efforts to address issues in privatized military housing. In September 2024, she co-introduced the Restore Military Families’ Voices Act alongside Senators Kirsten Gillibrand (D-N.Y.) and Jeanne Shaheen (D-N.H.), as well as Representatives Sara Jacobs (D-Calif.) and Don Davis (D-N.C.). The legislation seeks to prohibit private military housing companies from requiring non-disclosure agreements (NDAs) as a condition for tenancy.

Additionally, in September 2024, Warren and Senator Ed Markey (D-Mass.) pressed 13 corporate landlords operating in Massachusetts to disclose whether they were using RealPage’s algorithm to determine rental prices. Earlier in July 2024, Warren and Representative Sara Jacobs led a call for the DoD to better protect military families living in privatized military housing under the Military Housing Privatization Initiative (MHPI).

The senators’ latest push for a DoD investigation reflects growing bipartisan concern over the financial strain placed on military families and the potential misuse of taxpayer dollars.

Source: Banking Senate Gov