Senate Dems ask Hegseth to probe potential price gouging on military families' housing
Democrats on the Senate Banking Committee are asking Defense Secretary Pete Hegseth to probe what’s driving the price hikes in rent and housing costs for military families.
Specifically, 15 Democrats — led by the committee’s ranking member, Sen. Elizabeth Warren (D-Mass.), and Sen. Ruben Gallego (D-Ariz.) — wrote a letter on Monday asking the Department of Defense (DOD) to investigate whether the high prices are a result of companies and landlords using RealPage’s rent-pricing system.
RealPage, a property management software company, is facing legal action from the Justice Department and 10 state attorneys general, who argue its rent-pricing system allows landlords to align their rents with each other to stifle competition and increase their own revenue, thereby hurting tenants.
“Services provided by RealPage may enable landlords to raise rents even more aggressively to the detriment of military families,” the lawmakers wrote. “RealPage’s services YieldStar and AIRM help landlords exchange proprietary information about lease terms and rents in order to maximize revenue.”
The Senate Democrats are asking DOD to investigate whether landlords and private companies with which DOD has housing contracts are using RealPage’s products “to price gouge military families”; whether the DOD is taking steps to protect military families’ data from being disclosed to housing companies; and what steps DOD is taking to ensure military families have access to safe, clean and affordable housing.
“The Department of Defense has a responsibility to protect military families from predatory private housing companies and ensure that taxpayer dollars meant for military families are not being pocketed by unscrupulous landlords,” they wrote.
The lawmakers expressed concern, too, that the Basic Allowance for Housing (BAH) — which the DOD provides service members to help with housing costs — is not keeping up with the costs of rent.
The Senate Democrats asked DOD to probe, too, reports that landlords are raising rents to profit off BAH increases rather than because of market conditions, citing a study saying this practice is “common.”
“These findings raise significant concerns that landlords are profiteering by taking taxpayer money that is intended to support military families,” the lawmakers wrote.
They also noted that, in 2022, the DOD increased the BAH for 28 areas where rental prices increased dramatically. In “several” of those areas — according to the Senate Democrats, who cited the DOJ lawsuit — RealPage allegedly “contributed to excessive rental costs.”
RealPage did not respond to a request for comment, but the company has forcefully defended itself against the legal challenges it faces.
The company says housing affordability is the “real problem” and that the purpose of its revenue management system “is to optimize revenue – not to maximize rents.” The company also has said that some price recommendations include lowering rents – not just raising rents – and that the landlords and companies that use the software are never coerced into accepting the software’s pricing recommendations.
“Housing affordability should be the real focus. RealPage is proud of the role our customers play in providing safe and affordable housing to millions of people. Despite the noise, we will continue to innovate with confidence and make sure our solutions continue to benefit residents and housing providers alike,” RealPage CEO and President Dana Jones said in a statement on the company’s website, responding to the “false claims” in “media and legal filings.”
A DOD spokesperson said the Department would respond directly to the authors of the letter.
Topics
-
Dems probe mystery OPM server
Welcome to The Hill's Technology newsletter {beacon} Technology Technology The Big Story Mystery OPM server draws scrutiny House Oversight Democrats are calling for answers about the ...The Hill - 1h -
With military housing costs skyrocketing, Democratic senators request Pentagon action
A group of lawmakers sent a letter to Defense Secretary Pete Hegseth requesting that he looks into the higher rental costs faced by service members’ families.NBC News - 14h -
GPs asked to identify potential gambling addicts
The health watchdog says gambling should be given the same weight as alcohol and nicotine addiction.BBC News - Jan. 28 -
Hegseth confirmed as secretary of defense by Senate
The Senate narrowly confirmed former Fox News host Pete Hegseth to lead the Defense Department, with Vice President Vance making the tie-breaking vote. NBC News' Vaughn Hillyard and Julie Tsirkin ...NBC News - Jan. 25 -
Hegseth clears key Senate hurdle
Presented by Lockheed Martin — Two GOP senators said they will not support President Trump's Defense pick Pete Hegseth, who can only afford to lose three Republican votes and still clinch the ...The Hill - Jan. 23 -
L.A. landlords accused of price gouging say they’re responding to unprecedented demand from wealthy wildfire victims
Some landlords lowered rents after MarketWatch asked about increases that appeared to violate laws against price gouging.MarketWatch - Jan. 18 -
LA officials warn of price gouging as those displaced by fire seek housing
County sheriff says anyone who tries to scam the thousands of people looking for accommodations will be prosecuted. Wildfires live updates Los Angeles authorities are warning against scams and ...The Guardian - Jan. 13 -
Los Angeles area wildfire evacuees face price gouging
Forced to evacuate their homes amid perilous wildfires, Los Angeles residents now face price gouging while trying to find places to live.CBS News - Jan. 12 -
Officials warn against price gouging, looting amid Los Angeles wildfires
California Attorney General Rob Bonta warned of bad actors who seek to use the trauma and chaos created by the wildfires in California for their own gain.CBS News - Jan. 11
More from The Hill
-
Live updates: Trump suggests Gaza should 'not be rebuilt' in joint presser with Netanyahu
President Trump and Israeli Prime Minister Benjamin Netanyahu are holding a joint press conference at the White House on Tuesday where they are discussing the future of the Gaza Strip. Several ...The Hill - 14m -
Judge blocks Trump’s order forcing incarcerated transgender women to live in male facilities
A judge on Tuesday temporarily blocked President Trump’s executive order mandating that transgender women in federal prison be housed in male facilities and the government stop funding ...The Hill - 14m -
Robert Kraft's son launches campaign for Boston mayor
The son of New England Patriots owner Robert Kraft, Josh Kraft, has launched a campaign to be Boston’s mayor. “I love with this city with its many unique neighborhoods, and its people. The people ...The Hill - 38m -
Trump floats US taking over Gaza Strip
President Trump on Tuesday floated the idea of the U.S. taking over the Gaza Strip, saying America should be responsible for clearing the territory of rubble and unexploded bombs and proposing an ...The Hill - 54m -
United resumes flights from US to Israel
United Airlines announced on Tuesday it plans to restart flights to Israel next month, making it the first major U.S. airline to do so this year. On March 15, United will resume service from Newark ...The Hill - 55m
More in Politics
-
Live updates: Trump suggests Gaza should 'not be rebuilt' in joint presser with Netanyahu
President Trump and Israeli Prime Minister Benjamin Netanyahu are holding a joint press conference at the White House on Tuesday where they are discussing the future of the Gaza Strip. Several ...The Hill - 14m -
Judge blocks Trump’s order forcing incarcerated transgender women to live in male facilities
A judge on Tuesday temporarily blocked President Trump’s executive order mandating that transgender women in federal prison be housed in male facilities and the government stop funding ...The Hill - 14m -
'U.S. will take over the Gaza Strip,' Trump says
During a press conference with Israeli Prime Minister Benjamin Netanyahu, President Donald Trump spoke on the devastation left behind in the Gaza Strip and said the U.S. will take it over. Trump ...NBC News - 21m -
Robert Kraft's son launches campaign for Boston mayor
The son of New England Patriots owner Robert Kraft, Josh Kraft, has launched a campaign to be Boston’s mayor. “I love with this city with its many unique neighborhoods, and its people. The people ...The Hill - 38m -
Trump floats US taking over Gaza Strip
President Trump on Tuesday floated the idea of the U.S. taking over the Gaza Strip, saying America should be responsible for clearing the territory of rubble and unexploded bombs and proposing an ...The Hill - 54m