Canada's Competition Bureau investigates algorithmic rent-setting by landlords
Canada's federal Competition Bureau is investigating whether landlords are using algorithmic pricing software to coordinate rental rates instead of competing on price. The probe was triggered by a US Department of Justice lawsuit against RealPage Inc. alleging it enables landlords to collude and inflate rents.
What happened
Canada's federal Competition Bureau confirmed in February 2025 that it is investigating the use of algorithmic pricing in the country's home rental market. The probe targets practices that allow landlords to use software to track competitors' rental rates and set prices accordingly rather than competing on lower rates.
The investigation was prompted by a U.S. Department of Justice lawsuit filed in August 2024 against RealPage Inc., a Texas-based company. The DOJ alleged that RealPage's software allows landlords to submit competitive information including lease terms, rental rates and occupancy data, which the algorithm uses to provide pricing recommendations based on rivals' data.
Reported impact
Canadian politicians and renter advocates have stated that the pricing practice is inflating monthly rents. The DOJ lawsuit alleged the RealPage software enables landlords to 'sidestep vigorous competition to win renters' business.'
Index analysis
In January 2025, the DOJ added six more real estate companies to its case, including firms with operations in Canada or connections to Canadian pension funds, such as Cushman & Wakefield.
Governance controls
The Competition Bureau stated it would take action if it found evidence of activities that could raise concerns under Canadian law, though no findings have been made at this stage.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.