Military families struggle amid rising housing costs; senators urge Pentagon action
Pranjal Chandra | THE TIMES OF INDIA NEWS SERVICE | Feb 04, 2025, 19:55 IST
( Image credit : TIL Creatives )
Military families are struggling with rising housing costs, worsened by a potential rent-inflating software used by landlords. Fifteen Democratic senators have called for a Pentagon investigation, and a federal lawsuit against RealPage Inc. alleges that their pricing system has driven up rental prices, impacting military readiness and financial stability.
As housing costs skyrocket across the U.S., military families are facing increasing financial strain, prompting Democratic senators to demand an investigation into potential profiteering by landlords using controversial rent-pricing software.
For military families like Brenden Taylor’s, the struggle to secure affordable housing has intensified. After leaving Okinawa, Japan, in 2022 for Camp Pendleton in California, Taylor and his family found themselves priced out of nearby rentals, forcing them to settle in Murietta, a 45-minute drive from the base.
The broader housing crisis has been exacerbated by a 25% median rent increase from 2021 to 2023, while household incomes have only risen by 5%, according to Harvard University research. Active-duty service members, who rely on a Defense Department allowance to offset housing costs, have been hit particularly hard. A Blue Star Families survey revealed that only 26% of military families found their housing allowance sufficient last year, a sharp decline from 42% four years earlier.
Fifteen Democratic senators, led by Elizabeth Warren (Mass.) and Ruben Gallego (Ariz.), have urged Defense Secretary Pete Hegseth to examine whether landlords are inflating rents using software from RealPage Inc., a property management technology company. RealPage is currently facing legal action from federal prosecutors and state attorneys general, who allege that its system enables landlords to collude on rental prices, limiting competition and driving up costs.
In their letter, the senators expressed concern that RealPage’s pricing algorithms could be disproportionately harming military families. They called on the Pentagon to assess whether the system is being used by landlords renting to service members and to outline measures to protect military families from exploitation.
“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,” the letter stated.
A spokesperson for the Defense Department did not respond to requests for comment.
RealPage denies the allegations, asserting that its system promotes fair competition in the rental market. However, last year’s federal lawsuit alleged that the company’s pricing model contributed to steep rent hikes in areas surrounding military bases, including Houston, San Diego, and parts of Florida. Prosecutors expanded the lawsuit in recent months, adding additional landlords to the complaint.
As scrutiny mounts, RealPage is set to respond to the amended lawsuit this week.
The increasing cost of housing has far-reaching implications for military recruitment and retention. With 70% of active-duty families living off base, rent fluctuations significantly impact their financial stability. The Defense Department has responded with modest increases in the Basic Housing Allowance, including a 5.4% rise this year following a 12.1% hike in 2023. Still, military families report that these adjustments fail to keep pace with market trends.
Renee Villaman, whose husband is stationed at Camp Pendleton, noted that even on-base housing costs appear to rise alongside those in surrounding areas, despite government ownership of the land. “When rent in Oceanside goes up, why does it also increase on base?” she questioned.
As financial pressures mount, fewer military families are encouraging others to enlist, posing a potential threat to national security, according to Blue Star Families.
“Military families’ financial stability is absolutely key, not only for the families living it but for our overall national security,” said Lindsay Knight, the organization’s chief impact officer. “The more we can shore up military family security, the more resilient and robust our all-volunteer force will be.”
With a federal lawsuit looming and mounting political pressure, military families are left waiting for meaningful reforms to ease their housing burden and ensure economic stability.
Military families caught in housing cost surge
The broader housing crisis has been exacerbated by a 25% median rent increase from 2021 to 2023, while household incomes have only risen by 5%, according to Harvard University research. Active-duty service members, who rely on a Defense Department allowance to offset housing costs, have been hit particularly hard. A Blue Star Families survey revealed that only 26% of military families found their housing allowance sufficient last year, a sharp decline from 42% four years earlier.
Senators call for pentagon investigation into rent inflation
In their letter, the senators expressed concern that RealPage’s pricing algorithms could be disproportionately harming military families. They called on the Pentagon to assess whether the system is being used by landlords renting to service members and to outline measures to protect military families from exploitation.
“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,” the letter stated.
A spokesperson for the Defense Department did not respond to requests for comment.
Legal battle over rent-setting technology
As scrutiny mounts, RealPage is set to respond to the amended lawsuit this week.
Impact on military readiness and national security
Renee Villaman, whose husband is stationed at Camp Pendleton, noted that even on-base housing costs appear to rise alongside those in surrounding areas, despite government ownership of the land. “When rent in Oceanside goes up, why does it also increase on base?” she questioned.
As financial pressures mount, fewer military families are encouraging others to enlist, posing a potential threat to national security, according to Blue Star Families.
“Military families’ financial stability is absolutely key, not only for the families living it but for our overall national security,” said Lindsay Knight, the organization’s chief impact officer. “The more we can shore up military family security, the more resilient and robust our all-volunteer force will be.”
With a federal lawsuit looming and mounting political pressure, military families are left waiting for meaningful reforms to ease their housing burden and ensure economic stability.