UDR allegedly used RealPage algorithms to set San Diego rents in violation of municipal code
A proposed class action lawsuit alleges that UDR, Inc. violated San Diego's municipal code by using RealPage's YieldStar algorithm to set rental prices and occupancy levels based on nonpublic competitor data. San Diego's ordinance banning such practices took effect June 21, 2025, and the lawsuit claims algorithmic pricing increased average rents by approximately $99 monthly in 2023.
What happened
UDR, Inc. was sued in a proposed class action lawsuit alleging it unlawfully used RealPage's algorithmic devices, including YieldStar, to set rental prices and occupancy levels for residential properties in San Diego based on nonpublic competitor data such as rental rates and occupancy levels.
San Diego passed an ordinance on May 22, 2025, amending Municipal Code § 98.1103 to prohibit landlords from using algorithmic devices to calculate rental rates or occupancy levels based on nonpublic competitor data. The ordinance took effect on June 21, 2025.
Reported impact
According to the lawsuit, algorithmic pricing contributed to inflated rental prices and made living in San Diego increasingly unaffordable for most families. The Council of Economic Advisers estimated that algorithmic pricing increased the average monthly rent for San Diego renters by approximately $99 in 2023.
Index analysis
The lawsuit alleged that UDR admitted in prior litigation against RealPage brought by the District of Columbia that it used YieldStar as 'one tool among others' in decision-making regarding multifamily units.
Governance controls
San Diego passed a municipal ordinance specifically designed to protect the rental housing market and tenants from corporate landlords using algorithmic pricing devices.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.