The Digital Press

Derek Thompson investigates claims that big homebuilders create monopolies to restrict housing supply and raise prices, finding the evidence unconvincing and often misapplied. He argues that legal barriers and zoning laws, rather than monopolistic practices, are the primary drivers of the US housing crisis.

Why it matters: Misattributing housing shortages to monopolies risks misguided policies that could harm homebuilding resilience and affordability.

The big picture: Market concentration in homebuilding is generally too low to constitute oligopolies significantly restricting supply, even in large metros like Dallas.

The other side: Critics argue that big builders leverage market power and influence, but experts cited by Thompson refute monopoly claims, emphasizing zoning constraints instead.

Commenters say: Readers appreciate Thompson’s thorough reporting and fact-checking but criticize his narrow focus on single-family homebuilders, ignoring rental market monopolies and broader systemic issues.