NDP asks competition watchdog to investigate potential rent-fixing by corporate landlords

OTTAWA — The New Democratic Party has asked the Competition Bureau to investigate whether Canadian corporate landlords are using the same AI software that sparked an antitrust lawsuit in the United States.

The U.S. Department of Justice filed a lawsuit last month against real estate software company RealPage Inc., accusing it of illegally allowing property owners to coordinate to inflate rental prices.

The lawsuit, filed jointly with attorneys general of states including North Carolina and California, accuses the company of violating antitrust laws by using an algorithm that landlords use to derive recommended rental prices for millions of apartments across the country.

New Democratic Party MPs Alexandre Boulerice and Brian Masse have sent a letter to Commissioner Matthew Boswell asking his office to launch an investigation into whether Canadian landlords were using the same software, YieldStar.

“Canadians deserve answers about how the use of algorithmic pricing tools contributes to rent increases and how common this practice is in the Canadian rental market,” the letter, dated Sept. 10, reads.

Rents in Canada have skyrocketed over the past few years, raising concerns about housing affordability in the country.

Average rents in August rose 3.3 per cent from a year ago — the slowest pace of growth in almost three years — to $2,187, according to the latest report from Rentals.ca and Urbanation.

This report by The Canadian Press was first published September 20, 2024.

— Based on Associated Press files.

Nojoud Al Mallees, The Canadian Press