Whenever libertarians or deregulation-loving neoliberals start arguing for "smaller government" or deregulation just point them to examples like this. Only government stops thinks like price-gouging, housing discrimination and many other state functions.
What we're dealing with here in economic terms is what happens when you apply a largely unregulated market to a necessity that (by being a necessity) has inelastic demand. You need somewhere to live so the only function of capitalism in that case is to extract as much wealth from you as possible for something you can't possibly do without.
Some will point out not all landlords do this (that's just a matter of time) and there is other software. This is the lie of competition when what we really end up with is price-fixing. Except price-fixing is technically illegal so instead you end up with "price leadership", which is the same thing but legal. This is where Delta decides to start charging $30 for a checked bag and United and American Airlines mysteriously follow suit.
"Leadership".
This isn't innovation. It's not even market efficiency. It's coercion, which is state violence, something people seem blind to. If you don't pay the sheriff will show up and phyusically throw you on the street. Eviction is violence.