Wauwatosa Alderman Proposes Ban on RealPage Software to Combat Rising Rental Costs and Protect Housing Affordability
Wauwatosa, WI – October 14, 2024 – A new proposal has been introduced to the Wauwatosa Common Council to ban the use of RealPage property management software within city limits. The initiative comes in response to growing concerns over rental price inflation and market manipulation, as alleged in several lawsuits against RealPage, including those from the U.S. Department of Justice, Nashville, and other major U.S. cities.
The Case Against RealPage
RealPage, a revenue management software, has been widely criticized for its role in artificially inflating rents. A recent settlement in Nashville highlighted the software’s ability to facilitate collusion among landlords by using non-public data to set rents across multifamily housing units, raising legal concerns under antitrust laws (Pinnacle-settlement-RealPage, 2024). Following similar lawsuits filed nationwide, including a U.S. Department of Justice investigation into RealPage’s practices, cities like San Francisco have already passed bans on using revenue management software to protect renters (Salmonsen, 2024).
2025 Executive Budget Concerns
The proposal to ban RealPage comes as the 2025 Executive Budget for Wauwatosa has removed its affordable housing fund, further complicating the city’s ability to address housing affordability (City of Wauwatosa, 2024). Without dedicated funding, eliminating manipulative pricing software could serve as a vital stopgap to prevent further rent hikes and displacement of residents.
Potential State Compliance Issues
However, there are concerns about whether such a ban would comply with Wisconsin state statutes that regulate the role of municipalities in imposing limitations on private enterprise. Under Wis. Stat. § 62.11, municipal powers are broad but may face challenges when regulating private market tools like RealPage (RealPage Proposal Memo, 2024). As a precaution, the proposal requires landlords to disclose if they use RealPage software, providing transparency in rental listings, should a total ban be legally challenged.
Benefits of the Ban
Regardless of how many properties in Wauwatosa use RealPage, banning RealPage would help promote fair housing practices, prevent rent price manipulation, and support residents struggling with rising housing costs. Wauwatosa can proactively ensure housing affordability and transparency in its rental market by aligning with other cities’ initiatives and recent legal precedents.
The proposal will be discussed by the Wauwatosa Government Affairs Committee on 10/15/2024 at 6:30 pm in the Wauwatosa City Hall Council Chambers.
References
City of Wauwatosa. (2024). 2025 Executive Budget.
Pinnacle-settlement-RealPage. (2024). Joint Motion, February 2024.
RentCafe. (2024). Wauwatosa, WI Rental Market Trends.
Salmonsen, M. (2024, August 13). San Francisco passes ban on revenue management software like RealPage and Yardi. Multifamily Dive.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
