The Brief

If you’ve hunted for apartments recently and felt like all the rents were equally high, you’re not crazy: Many landlords now use a single company’s software — which uses an algorithm based on proprietary lease information — to help set rent prices.

Federal prosecutors say the practice amounts to “an unlawful information-sharing scheme” and some lawmakers throughout California are moving to curb it. San Diego’s city council president is the latest to do so, proposing to prevent local apartment owners from using the pricing software, which he maintains is driving up housing costs.

San Diego’s proposed ordinance, now being drafted by the city attorney, comes after San Francisco supervisors in July enacted a similar, first-in-the-nation ban on “the sale or use of algorithmic devices to set rents or manage occupancy levels” for residences. San Jose is considering a similar approach.

And California and seven other states have also joined the federal prosecutors’ antitrust suit, which targets the leading rental pricing platform, Texas-based RealPage. The complaint alleges that “RealPage is an algorithmic intermediary that collects, combines, and exploits landlords’ competitively sensitive information. And in so doing, it enriches itself and compliant landlords at the expense of renters who pay inflated prices…”

But state lawmakers this year failed to advance legislation by Bakersfield Democratic Sen. Melissa Hurtado that would have banned the use of any pricing algorithms based on nonpublic data provided by competing companies. She said she plans to bring the bill back during the next legislative session because of what she described as ongoing harms from such algorithms.

“We’ve got to make sure the economy is fair and … that every individual who wants a shot at creating a business has a shot without being destroyed along the way, and that we’re also protecting consumers because it is hurting the pocketbooks of everybody in one way or another,” said Hurtado.

RealPage has been a major impetus for all of the actions. The company counts as its customers landlords with thousands of apartment units across California. Some officials accuse the company of thwarting competition that would otherwise drive rents down, exacerbating the state’s housing shortage and driving up rents in the process.

“Every day, millions of Californians worry about keeping a roof over their head and RealPage has directly made it more difficult to do so,” said California Attorney General Rob Bonta in a written statement.

A RealPage spokesperson, Jennifer Bowcock, told CalMatters that a lack of housing supply, not the company’s technology, is the real problem — and that its technology benefits residents, property managers, and others associated with the rental market. The spokesperson later wrote that a “ misplaced focus on nonpublic information is a distraction… that will only make San Francisco and San Diego’s historical problems worse.”

As for the federal lawsuit, the company called the claims in it “devoid of merit” and said it plans to “vigorously defend ourselves against these accusations.”

“We are disappointed that, after multiple years of education and cooperation on the antitrust matters concerning RealPage, the (Justice Department) has chosen this moment to pursue a lawsuit that seeks to scapegoat pro-competitive technology that has been used responsibly for years,” the company’s statement read in part. “RealPage’s revenue management software is purposely built to be legally compliant, and we have a long history of working constructively with the (department) to show that.”

The company’s challenges will only grow if pricing software becomes another instance in which California lawmakers lead the nation. Following San Francisco’s ban, the Philadelphia City Council passed a ban on algorithmic rental price-fixing with a veto-proof vote last month. New Jersey has been considering its own ban.

Is it price fixing - or coaching landlords?

According to federal prosecutors, RealPage controls 80% of the market for commercial revenue management software. Its product is called YieldStar, and its successor is AI Revenue Management, which uses much of the same codebase as YieldStar, but has more precise forecasting. RealPage told CalMatters it serves only 10% of the rental markets in both San Francisco and San Diego, across its three revenue management software products.

Here’s how it works:

In order to use YieldStar and AIRM, landlords have historically provided RealPage with their own private data from their rental applications, rent prices, executed new leases, renewal offers and acceptances, and estimates of future occupancy, although a recent change allows landlords to choose to share only public data. This information from all participating landlords in an area is then pooled and run through mathematical forecasting to generate pricing recommendations for the landlords and for their competitors.

The San Diego council president, Sean Elo-Rivera, explained it like this:

“In the simplest terms, what this platform is doing is providing what we think of as that dark, smoky room for big companies to get together and set prices,” he said. “The technology is being used as a way of keeping an arm’s length from one big company to the other. But that’s an illusion.”

In the company’s own words, from company documents included in the lawsuit, RealPage “ensures that (landlords) are driving every possible opportunity to increase price even in the most downward trending or unexpected conditions.” The company also said in the documents that it “helps curb (landlords’) instincts to respond to down-market conditions by either dramatically lowering price or by holding price.”

Providing rent guidance isn’t the only service RealPage has offered landlords. In 2020, a Markup and New York Times investigation found that RealPage, alongside other companies, used faulty computer algorithms to do automated background checks on tenants. As a result, tenants were associated with criminal charges they never faced, and denied homes.

Impact on tenants

Thirty-one-year-old Navy veteran Alan Pickens and his wife move nearly every year “because the rent goes up, it gets unaffordable, so we look for a new place to stay,” he said. The northeastern San Diego apartment complex where they just relocated has two-bedroom apartments advertised for between $2,995 and $3,215.

They live in an area of San Diego where the U.S. Justice Department says information-sharing agreements between landlords and RealPage have harmed or are likely to harm renters.

The department in August filed its antitrust lawsuit against RealPage, alleging the company, through its legacy YieldStar software, engaged in an “unlawful scheme to decrease competition among landlords in apartment pricing”. The complaint names specific areas where rents are artificially high. Beyond the part of San Diego where Pickens lives, those areas include South Orange County, Rancho Cucamonga, Temecula, and Murrieta and northeastern San Diego.

In the second quarter of 2020, the average rent in San Diego County was $1,926, reflecting a 26% increase over three years, according to the San Diego Union-Tribune. Rents have since risen even more in the city of San Diego, to $2,336 per month as of November 2024 – up 21% from 2020, according to RentCafe and the Tribune. That’s 50% higher than the national average rent.

The attorneys general of eight states, including California, joined the Justice Department’s antitrust suit, filed in U.S. District Court for the Middle District of North Carolina.

The California Justice Department contends RealPage artificially inflated prices to keep them above a certain minimum level, said department spokesperson Elissa Perez. This was particularly harmful given the high cost of housing in the state, she added. “The illegally maintained profits that result from these price alignment schemes come out of the pockets of the people that can least afford it.”

Renters make up a larger share of households in California than in the rest of the country — 44% here compared to 35% nationwide. The Golden State also has a higher percentage of renters than any state other than New York, according to the latest U.S. Census data.

San Diego has the fourth-highest percentage of renters of any major city in the nation.

The recent ranks of California legislators, however, have included few renters: As of 2019, CalMatters could find only one state lawmaker who did not own a home — and found that more than a quarter of legislators at the time were landlords.

Studies show that low-income residents are more heavily impacted by rising rents. Nationally between 2000 and 2017, Americans without a college degree spent a higher percentage of their income on rent. That percentage ballooned from 30% to 42%. For college graduates, that percentage increased from 26% to 34%.

“In my estimation, the only winners in this situation are the richest companies who are either using this technology or creating this technology,” said Elo-Rivera. “There couldn’t be a more clear example of the rich getting richer while the rest of us are struggling to get by.”

The state has invested in RealPage

Private equity giant Thoma Bravo acquired RealPage in January 2021 through two funds that have hundreds of millions of dollars in investments from California public pension funds, including the California Public Employees’ Retirement System, the California State Teachers’ Retirement System, the Regents of the University of California and the Los Angeles police and fire pension funds, according to Private Equity Stakeholder Project.

“They’re invested in things that are directly hurting their pensioners,” said K Agbebiyi, a senior housing campaign coordinator with the Private Equity Stakeholder Project, a nonprofit private equity watchdog that produced a report about corporate landlords’ impact on rental hikes in San Diego.

RealPage argues that landlords are free to reject the price recommendations generated by its software. But the U.S. Justice Department alleges that trying to do so requires a series of steps, including a conversation with a RealPage pricing adviser. The advisers try to “stop property managers from acting on emotions,” according to the department’s lawsuit.

If a property manager disagrees with the price the algorithm suggests and wants to decrease rent rather than increase it, a pricing advisor will “escalate the dispute to the manager’s superior,” prosecutors allege in the suit.

In San Diego, the Pickenses, who are expecting their first child, have given up their gym memberships and downsized their cars to remain in the area. They’ve considered moving to Denver.

“All the extras pretty much have to go,” said Pickens. “I mean, we love San Diego, but it’s getting hard to live here.”

“My wife is an attorney and I served in the Navy for 10 years and now work at Qualcomm,” he said. “Why are we struggling? Why are we struggling?”

State regulators voted Thursday to stop Southern California Gas Co. from charging customers to help pay for planning miles of pipelines that would bring hydrogen gas to the L.A. Basin.

The company says the project would reduce the region’s reliance on methane gas.

Southern California Gas estimates it would cost about $266 million to study and plan the project — called Angeles Link — and asked the state Public Utilities Commission to allow it to recover those costs through customer rates. The company had proposed a monthly increase of $0.35 on the average residential customer bill over the course of three years.

The commission unanimously rejected the request, saying the company had not proved any direct benefit to customers. The decision effectively halts the project for now, and comes amid a stall in federal funding for hydrogen projects under the Trump administration.

Local environmental groups involved in the community advisory process had also grown frustrated by negotiations that they said, in a letter to state regulators, “does not prioritize genuine community engagement.”

As global pollution levels continue to climb, the commission’s decision also highlights the growing challenge of transitioning to a cleaner energy supply amid rising utility bills and open questions about the safety and true environmental cost of largely untested technology.

Why hydrogen?

Hydrogen is a colorless gas that is considered "clean" because it doesn’t involve carbon, which — when burned to create energy — becomes carbon dioxide, a major planet-heating gas.

But it takes energy to produce hydrogen, and most hydrogen these days is created by burning fossil fuels. “Green” hydrogen is created by using clean energy sources like solar and wind to split water into oxygen and hydrogen.

SoCal Gas said the Angeles Link project would prioritize green hydrogen.

Most experts see green hydrogen as an important clean-burning fuel for hard-to-electrify industries, such as long-haul trucking and gas-fired power generation. The city of Los Angeles, for example, wants to retrofit its Scattergood Power Plant near El Segundo to burn hydrogen instead of methane gas to generate electricity.

There are many open questions about how safe the highly-combustible gas is for proposed uses and how much water it will require to make. At the same time, extracting and burning fossil fuels for electricity and fuel also takes water — a growing problem as climate change drives longer and hotter droughts.

Experts say, if done right, hydrogen can reduce that water intake and not have a major impact on water supplies.

Also, burning hydrogen could actually worsen local, lung-damaging nitrogen-oxide air pollution, at least with the technology as it currently stands, according to energy researchers.

Reactions to the decision

SoCal Gas will now have to turn to shareholders or other sources of funding if the company wants to proceed. The company did not directly answer LAist’s questions about whether it would.

“We continue to believe that hydrogen—including clean renewable hydrogen—can help advance California’s energy and climate goals while supporting the long‑term affordability, security and reliability of energy service for customers,” SoCal Gas spokesperson Brian Haas wrote in an email to LAist.

Environmental groups celebrated the vote, while emphasizing they see green hydrogen playing a role in the state’s future.

“Residential customers should not subsidize speculative infrastructure for large industrial users,” said Michael Colvin, director of the California Energy Program at Environmental Defense Fund, in a statement.

“We look forward to working with regulators, utilities and large customers to build a credible, cost-effective strategy to cut climate pollution from sectors that are hardest to electrify,” the statement read.

Global events like the World Cup and the 2028 Olympics are sure to draw thousands of new visitors wanting to get to know Los Angeles.

L.A. has a lot to offer, including its vast and varied portfolio of public art. It’s even been referred to as the mural capital of the world. So if you want to explore some of the city’s art, here are a few murals you won’t want to miss.

Sports 

“LA Rising” at the Miyako Hotel in Little Tokyo celebrates the Dodgers’ Shohei Ohtani, depicting him in his two roles — hitter and pitcher.
- Where to find it: 328 First St., Los Angeles

“Blue Heaven on Earth” is a love letter to the Dodgers, depicting both Shohei Ohtani and the late Fernando Venezuela.
- Where to find it: 1647 Blake Ave., Los Angeles

A mural honoring Winter Olympics Gold Medalist Alysa Liu in Gardena.

(

Jay L Clendenin

/

Getty Images

)

California native and Olympian Alysa Liu captured the world’s attention with her figure skating in the Winter Olympics. This mural in Gardena celebrates her win.
- Where to find it: 15532 Crenshaw Blvd., Gardena

A mural of L.A. Lakers legend Kobe Bryant and his daughter Gianna can be found outside Hardcore Fitness L.A.

(

Mel Melcon/Los Angeles Times via Getty Imag

/

Los Angeles Times

)

“City of Angels!” pays tribute to Lakers legend Kobe Bryant and his daughter, Gigi.
- Where to find it: 400 W. Pico Blvd., Los Angeles

Music

Whitney Houston, Rihanna, Aaliyah, Amy Winehouse and Selena are memorialized on this Hollywood mural.
- Where to find it: 7677 Sunset Blvd., Los Angeles 

“Jazz on the field” is an ode to Wrigley Field and the Dunbar Hotel in South L.A. and depicts jazz icons Louis Armstrong and Etta James, as well as Martin Luther King Jr.
- Where to find it: 43rd St. and Grand Ave., Los Angeles

When Kendrick Lamar featured Tam’s Burgers in his “Not Like Us” music video, the burger spot in Compton commissioned a mural highlighting the rapper’s unforgettable single.
- Where to find it: 1201 Rosecrans Ave, Compton

Historic to LA

A section of the Great Wall of Los Angeles mural, designed by muralist Judy Baca, that showcases pivotal moments in Los Angeles History.

(

Ashley Balderrama

/

LAist

)

“The Great Wall of Los Angeles” is one of the largest murals in the world, and it’s supposed to get bigger. The half-mile art piece depicts California’s rich history.
- Where to find it: Along the L.A. River in the San Fernando Valley, on Coldwater Canyon Avenue between Burbank Boulevard and Oxnard Street. 

“The Blessing of the Animals” at La Placita Olvera depicts the Catholic tradition of blessing one’s animals.
- Where to find it: 115 Paseo De La Plaza, Los Angeles

“El Grito” depicts a scene that sparked Mexican independence from Spanish rule.
- Where to find it: Placita de Dolores at 831 N. Alameda St., Los Angeles

When you take a bite of the lomo saltado burrito from Merka Saltao, a fast-casual Peruvian restaurant in Culver City, one of the first things you'll notice is the sauce.

The wok-fried chunks of steak, dressed in a soy-and-oyster sauce reduction spiked with vinegar, saturate the rice inside the tortilla, highlighting the sweet heat of ají amarillo mixed with the velvety texture of pinto beans.

It's a beautiful confluence of flavors. It is also, depending on who you ask, either a creative act of evolution or a betrayal of Peruvian culinary heritage.

Standing on business

The lomo saltado burrito at Merka Saltao wasn't exactly a calculated move. Lifelong friends Alonso Franco and Ignacio Barrios — who met in high school in Lima — came to Los Angeles to bring Peruvian food to the masses, first through a ghost kitchen concept they ran from 2021 to 2023. The burrito happened almost by accident: a member of their kitchen team brought in a tortilla one day, someone suggested wrapping the lomo saltado in it, they ate it, and within three days, it was on the menu.

Merka Saltao co-founders Ignacio Barrios, left, and Alonso Franco, right, inside their Culver City restaurant. The two lifelong friends from Lima opened the fast-casual brick-and-mortar location for their Peruvian concept in August 2025.

(

Courtesy Merka Saltao

)

The data from the ghost kitchen made the case for keeping it there. Franco and Barrios had launched with around 140 dishes — lomo saltado, ceviche, chicken dishes, the works. But the numbers kept pointing to the same thing: wherever lomo saltado appeared on the menu, in whatever form, burrito, bowl, salad, it was the winner.

(Ceviche, for all its cultural cachet, is raw fish with raw onion — a harder sell for a weekday lunch. Lomo saltado, Franco noted, is steak and fries — basically a hamburger.)

The backlash

The two friends made the leap to brick-and-mortar in August 2025, opening Merka Saltao in downtown Culver City. It's one of the more competitive dining corridors in L.A., the kind of block that can support a $16 wellness bowl and a craft beer bar in the same stretch, populated by Amazon employees on lunch breaks, families on weekend outings, and food-literate regulars who will absolutely have opinions about what goes in a burrito.

Those opinions arrived faster than Franco expected. Within the first week of opening, an influencer came in and posted about the restaurant — but instead of showing the full menu, the bowls, the chicha morada, the flexibility of the concept, they showed the burrito. Just the burrito.

Franco working the wok at Merka Saltao. The high-heat wok technique at the heart of lomo saltado traces its roots to Chinese immigrants in Peru

(

Christopher Mortenson

/

Courtesy Merka Saltao

)

The comments turned quickly. "No! Peruvians don't eat burritos. ¿Qué car—o es eso?" — roughly, "what the hell is this?" — wrote one commenter. Another said "Burritos? We don't eat burritos in 🇵🇪”. Franco describes sitting at his computer reading the pile-on, feeling something between anger and devastation. "There was a moment where I probably even cried," he said, "thinking, I've made a mistake." But then he looked at the numbers. 30,000 had seen the post…. And half the comments were in his defense.

He took the conversation to Reddit, posting to r/FoodLosAngeles asking the community directly: am I wrong for this? The response was overwhelming — hundreds of comments, almost entirely in his favor, and a surge of new customers walking through the door shortly after.

Fusion by default

This is Los Angeles, where many of the dishes that define the Southern California diet were born precisely from cultures colliding. Roy Choi built an empire on Korean tacos. Al pastor traces its technique to Lebanese immigrants who brought the vertical spit. The California roll, invented by Japanese chefs in Los Angeles in the 1960s, introduced an entire country to sushi. None of these dishes destroyed the traditions they borrowed from. If anything, they expanded their audience. And the lomo saltado burrito isn't exactly a novel concept in Southern California to begin with — everyone from Pablitos Tacos in North Hollywood to Le Hut in Santa Ana, run by 2025 James Beard Award-nominated chef Daniel Castillo, has featured their own version. Even Disney's California Adventure got in on it, serving a lomo saltado burrito out of the Studio Catering Co. food truck as recently as last year.

The lomo saltado bowl and burrito at Merka Saltao in Culver City — two versions of the same dish that sparked an unlikely online debate about Peruvian culinary identity.

(

Courtesy Merka Saltao

)

Franco would also point out that lomo saltado itself — the dish the purists are so eager to protect — is a product of Chinese immigrants bringing the wok and soy sauce to Peru roughly 300 years ago. "Peruvian is by default fusion," he told me. "So we have all the right to wrap it up in a burrito." What the online critics were really doing, whether they knew it or not, was defending a dish that was itself once considered inauthentic — and doing so in the name of authenticity.

Where things stand

Since the backlash, Franco says business has been mostly steady — breaking even, which for a concept that requires high volume at a low price point, he considers a good sign. The controversy changed things in ways he didn't expect: people started coming in specifically because of the story, not just the food. He began putting himself front and center in the brand, regularly making videos on social media about what it's like to run the business, occasionally poking fun at himself and the whole debate. When we visited during the weekday lunch rush, there was a steady line of people waiting to order, many stopping to talk with Franco directly.

In a way, he's answered the authenticity question not with an argument but with a presence — showing up, telling the story, letting the food speak. "Honoring my food, if that requires pairing lomo saltado with a salad or wrapping it in a tortilla, I have no problem," he said. "I'm not being less authentic. We are evolving in Peru anytime. I have to be authentic on the individual flavor and then be flexible to reach more people to discover our flavors."

The burrito, it turns out, was never the point. It was just the door.