Federal officials are examining the possibility of launching an antitrust probe into the practices of major U.S. homebuilders as part of broader efforts to address persistent housing affordability pressures.
A White House spokesperson directed inquiries to the Department of Justice; the DOJ had not provided a response by the time of this report. Sources familiar with the discussions said one area of interest is whether members of a prominent homebuilder trade group known as Leading Builders of America are exchanging information in ways that could be used to limit supply or coordinate pricing.
Several of the association's notable members were identified as potential subjects of the review. D.R. Horton, Lennar, PulteGroup and Toll Brothers were named among the builders connected with the group; none of those companies provided immediate responses to requests for comment. The Leading Builders of America also did not immediately respond to a request for comment.
Officials close to the matter indicated the Department of Justice could initiate an inquiry within weeks, though they emphasized that no final determination has been reached. The reported consideration of an investigation comes shortly after separate accounts surfaced suggesting that some U.S. homebuilders were collaborating on a proposal to develop nearly a million so-called "Trump Homes"—a development that drew attention as buyers face continued affordability headwinds in an inflationary environment that has weighed on home sales.
Context and implications
The potential probe centers on whether information sharing among builders could restrict housing supply or influence pricing decisions. Government scrutiny of industry practices would represent a regulatory response aimed at tackling affordability issues, though officials have not announced any formal action.
What remains uncertain
- Whether the Department of Justice will open a formal antitrust investigation.
- The scope and focus of any inquiry should it proceed.
- Responses from the named builders and the trade association, which had not been received.