Democrats on the Senate Banking Committee are asking Defense Secretary Pete Hegseth to probe what’s driving the price hikes in rent and housing costs for military families.
Specifically, 15 Democrats — led by the committee’s ranking member, Sen. Elizabeth Warren (D-Mass.), and Sen. Ruben Gallego (D-Ariz.) — wrote a letter on Monday asking the Department of Defense (DOD) to investigate whether the high prices are a result of companies and landlords using RealPage’s rent-pricing system.
RealPage, a property management software company, is facing legal action from the Justice Department and 10 state attorneys general, who argue its rent-pricing system allows landlords to align their rents with each other to stifle competition and increase their own revenue, thereby hurting tenants.
“Services provided by RealPage may enable landlords to raise rents even more aggressively to the detriment of military families,” the lawmakers wrote. “RealPage’s services YieldStar and AIRM help landlords exchange proprietary information about lease terms and rents in order to maximize revenue.”
The Senate Democrats are asking DOD to investigate whether landlords and private companies with which DOD has housing contracts are using RealPage’s products “to price gouge military families”; whether the DOD is taking steps to protect military families’ data from being disclosed to housing companies; and what steps DOD is taking to ensure military families have access to safe, clean and affordable housing.
“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,” they wrote.
The lawmakers expressed concern, too, that the Basic Allowance for Housing (BAH) — which the DOD provides service members to help with housing costs — is not keeping up with the costs of rent.
The Senate Democrats asked DOD to probe, too, reports that landlords are raising rents to profit off BAH increases rather than because of market conditions, citing a study saying this practice is “common.”
“These findings raise significant concerns that landlords are profiteering by taking taxpayer money that is intended to support military families,” the lawmakers wrote.
They also noted that, in 2022, the DOD increased the BAH for 28 areas where rental prices increased dramatically. In “several” of those areas — according to the Senate Democrats, who cited the DOJ lawsuit — RealPage allegedly “contributed to excessive rental costs.”
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RealPage did not respond to a request for comment, but the company has forcefully defended itself against the legal challenges it faces.
The company says housing affordability is the “real problem” and that the purpose of its revenue management system “is to optimize revenue – not to maximize rents.” The company also has said that some price recommendations include lowering rents – not just raising rents – and that the landlords and companies that use the software are never coerced into accepting the software’s pricing recommendations.
“Housing affordability should be the real focus. RealPage is proud of the role our customers play in providing safe and affordable housing to millions of people. Despite the noise, we will continue to innovate with confidence and make sure our solutions continue to benefit residents and housing providers alike,” RealPage CEO and President Dana Jones said in a statement on the company’s website, responding to the “false claims” in “media and legal filings.”
A DOD spokesperson said the Department would respond directly to the authors of the letter.
