Preview:
CHICAGO (AP) — A lawsuit seeking class-action status accuses nine mobile home community management companies and a mobile home market data provider of conspiring to fix and inflate lot rental prices at more than 150 locations across the U.S.
The lawsuit filed last week in federal court in Chicago claims the management companies bought up mobile home parks and used “competitively sensitive market data” provided by Grand Rapids, Michigan-based Datacomp Appraisal Systems Inc. to exchange pricing information and conspire to raise rents.
“In the face of these significant manufactured home lot rent increases, some manufactured home residents...
Read MoreOur thoughts on this story:
The more I read about this lawsuit, the more I’m confused. Apparently tha plaintiffs are claiming that the park owners“ used “competitively sensitive market data” provided by Grand Rapids, Michigan-based Datacomp Appraisal Systems Inc. to exchange pricing information and conspire to raise rents”. Every industry group in the U.S. does continual market comp studies to see where they fit into the spectrum of rents and prices including every office, retail, lodging, self-storage and apartment group, right? “Price fixing” is defined as ”competitors that agree to set their prices at the same level”. Simply gathering market information does not seem to fit that profile. Not sure that any judge or jury would disagree.
Their other contention is that “Manufactured home lot rental prices were blatantly inflated at a staggering rate of 9.1% per year between 2019 and 2021.” If you simply go to Google and enter the words “apartment annual percentage of rent increases since 2019” the computer says the following:“Apartment rent growth averaged 11% per year during the rapid inflationary period of 2021 – 2022”. And that does not even count the same response if you enter in ”gasoline prices” which went up a cumulative 45% during that period and “single-family home prices” which went up a cumulative 32%. Once again, makes no sense.
As a result, I must be too stupid to understand this case. Does anyone?

