Senators demand investigation into price-gouging of military housing in cities like Wilmington

A group of fifteen senators has taken action by sending a letter to the Department of Defense, urging an investigation into the escalating rental rates faced by military families. The senators highlighted a national lawsuit involving RealPage, a software firm accused of contributing to the surge in rents in various locations, including Wilmington.

The Senate Committee on Banking, Housing, and Urban Affairs specifically targeted Secretary of Defense Pete Hegseth in a letter dated January 29. Their main concern was to ensure that service members’ Basic Allowance for Housing is not being exploited by landlords seeking undue profits. In 2023, the Department of Defense allocated $24 billion toward Basic Allowance for Housing, aimed at assisting military families with their housing expenses.

The senators expressed the need for the Department of Defense to shield military families from predatory housing companies and prevent the misuse of taxpayer funds. They raised concerns about algorithms like those utilized by RealPage potentially driving up housing costs for service members and non-BAH recipients within the community.

A substantial increase in housing allowances for 28 military housing areas in 2022 was noted by the senators. This adjustment was prompted by a substantial rise in rent prices, exceeding 20%, in these cities. For instance, New Hanover County saw a 51% surge in fair market rent for a two-bedroom apartment between 2018 and 2023, according to the North Carolina Housing Coalition report from January 2024.

RealPage has faced accusations of artificially inflating rents through data sharing in its pricing algorithm. The company reportedly shared confidential client information, including rental rates and competitors’ occupancy and rates, contributing to the increased cost of housing. This unlawful practice is the subject of an ongoing antitrust suit, with North Carolina being one of the participating states.

Senator Elizabeth Warren and her Democratic colleagues highlighted that RealPage’s operations impacted the city of Wilmington, where rents have escalated significantly. RealPage identified Wilmington as the nation’s fastest-growing renter household market in April.

An Old Dominion University study revealed that real estate and leasing professionals often use Basic Allowance for Housing information to set rental prices. The pervasive issue of housing affordability emerged as a primary financial stressor for active-duty military families, according to the 2023 Military Family Lifestyle Survey by Blue Star Families.

Some senators blamed the housing affordability crisis on market manipulation rather than government policies, contrasting RealPage’s statements about housing scarcity. The Department of Defense revealed an average 5.4% increase in Basic Allowance for Housing rates in January 2025, validating the senators’ concerns.

Further legal action has been taken by Attorney General Jeff Jackson against RealPage and major property management companies, alleging collaboration to inflate rents. This motivation stems from the belief that RealPage’s practices create an unjust competitive environment in the housing market, impacting both military families and the community at large.

Local representatives, such as Wilmington council member Salette Andrews, have also criticized RealPage’s impact on housing conditions. With ongoing investigations and legal issues, the plight of military families facing rising rental rates continues to be a pressing concern for policymakers and advocates alike.