FOLLOW US

Property management software giant RealPage sued New York’s attorney general Wednesday, claiming a newly enacted state law aimed at preventing landlords from using software to collude on rents is unconstitutional and unnecessary. Filed in federal court, the lawsuit argues the statute—set to take effect Dec. 15—tramples on the company’s First Amendment rights by restricting its ability to provide data-driven analysis and advice to residential building owners.

RealPage asserts the law violates not only its own freedom of speech, but also that of its clients, by outlawing software tools that help owners make informed decisions based on lawful information.

Dirk Wakeham, RealPage’s president and CEO, said the law deprives property owners of tools essential for operating effectively. “The multifamily industry deserves tools that support responsible operations, informed decisions, and better outcomes for residents,” he stated.

State Senator Fires Back: ‘RealPage Has No First Amendment Right to Raise Rents’

The law’s sponsor, Democratic state Sen. Brad Hoylman-Sigal of Greenwich Village, pushed back forcefully, saying RealPage cannot hide behind constitutional claims to justify inflated rents.

“Rent price-fixing via artificial intelligence is against state antitrust law,” he said. Declaring confidence in the law’s legality, Hoylman-Sigal argued RealPage’s lawsuit merely exposes what he called the company’s “cartel-like behavior.”

The senator added he expects the court to dismiss what he described as a “desperate and frivolous effort” to strike down a statute narrowly tailored to prevent illegal collusion.

Lawsuit Follows DOJ Settlement Over Alleged Rent Inflation Scheme

The legal challenge comes just days after RealPage reached a settlement with the U.S. Department of Justice over antitrust claims alleging its revenue management platform allowed landlords to inflate rent prices. While RealPage denied wrongdoing, it agreed to restrict its use of nonpublic data and is now cooperating with the DOJ in related actions against several building owners.

The company also faces a wave of antitrust litigation from renters in multidistrict cases.

RealPage argues that all pending antitrust suits target outdated versions of its software that once incorporated limited nonpublic data. The company maintains those versions still produced superior recommendations.

RealPage Says New York Misunderstands Its Software and Overreaches

The complaint emphasizes that RealPage’s current software—like the version approved by the DOJ—relies only on a building owner’s own data and publicly available information. It does not pool nonpublic data from multiple landlords when advising on rental pricing.

But New York’s new law goes much further, RealPage says, making it illegal to operate or use software that recommends rental prices or lease terms using data from more than one property owner—even when that information comes from public websites. According to the complaint, the statute effectively bans software that analyzes publicly accessible data across multiple properties to guide landlord decisions.

“This case is about a sweeping and unconstitutional ban on lawful speech,” the company said, arguing the law is unconstitutional both on its face and in its application.

State Officials Defend Law as Essential Protection for Renters

Gov. Kathy Hochul signed the bill in October as part of a broader legislative effort to expand homeownership and strengthen tenant protections. Local municipalities have passed similar measures, and congressional Democrats have floated a federal version.

A spokesperson for the governor said Hochul backed the law to protect renters from landlords “illegally jacking up rents” and accused RealPage of seeking to preserve inflated pricing practices.

“Now, the company that makes its profits by helping landlords collude and break the law is suing to keep those illegal rent hikes going,” the statement said. “We’re not backing down.”

RealPage Challenges the Evidence Behind the Law

The company’s complaint argues the law was based largely on a 2022 ProPublica article that RealPage claims contains “incorrect and misleading” claims about its platform. It also cites an op-ed from Hoylman-Sigal and Assemblymember Linda Rosenthal blaming rising rents on landlord software—an argument RealPage says ignores research showing rent increases stem primarily from a lack of housing supply.

The company also accuses lawmakers of disregarding evidence that its software reduces vacancies by recommending rent levels aligned with demand. RealPage says legislators failed to explain why existing antitrust laws were insufficient to prevent any potential collusion.

Legal Teams Square Off as Case Moves Forward

RealPage is represented by Gibson Dunn’s Theodore J. Boutrous Jr., Jay Srinivasan, Bradley J. Hamburger, Alexander N. Harris, Connor S. Sullivan, Jacob U. Arber, Michael Klurfeld and Iason Togias.

Boutrous called the New York law “a misguided effort” that attempts to regulate housing affordability by infringing RealPage’s right to offer “constitutionally protected speech.”

A representative for the New York Attorney General’s Office declined to comment, and counsel for the office was not immediately identifiable.