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NDP want competition watchdog to probe potential rent-fixing by landlords

Click to play video: 'Latest rental data paints a not-so rosy picture of housing affordability in B.C.'
Latest rental data paints a not-so rosy picture of housing affordability in B.C.
RELATED: Latest rental data paints a not-so rosy picture of housing affordability in B.C – Sep 11, 2024

The NDP is asking the Competition Bureau to investigate whether Canadian landlords are using the same AI software that sparked an antitrust lawsuit in the United States.

The U.S. Justice Department filed the lawsuit last month against real estate software company RealPage Inc., accusing it of an illegal scheme that allows landlords to coordinate to hike rental prices.

The lawsuit, filed alongside attorneys general in states including North Carolina and California, alleges the company is violating antitrust laws through its algorithm that landlords use to get recommended rental prices for millions of apartments across the country.

Click to play video: 'Halifax-area landlords defend use of fixed-term leases'
Halifax-area landlords defend use of fixed-term leases

NDP MPs Alexandre Boulerice and Brian Masse sent a letter to Commissioner Matthew Boswell asking the bureau to launch a probe into whether Canadian landlords have used the same software, YieldStar.

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Rents in Canada have skyrocketed over the last couple of years, adding to affordability concerns in the country.

According to the latest report from Rentals.ca and Urbanation, average asking rents in August rose 3.3 per cent from last year — the slowest annual pace in almost three years — to $2,187.

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