Trump’s DOJ Weighing Antitrust Investigation of Homebuilders

Add a possible federal investigation into the myriad of issues facing homebuilders today.

The Department of Justice is considering an antitrust investigation into the industry, Bloomberg reported. Should the agency open the investigation — which is not guaranteed — the process could begin in the coming weeks.

Pam Bondi’s department declined to comment on the possible investigation.

The avenues for the probe are unclear, but one possibility is a look at the Leading Builders of America, a prominent industry trade group that counts Lennar and D.R. Horton among its members. Officials are reportedly wary of how information is shared through the group, concerned about potential supply restrictions or price coordination.

More than anything, the potential investigation appears to be another swing at addressing housing affordability, which has become a notable talking point for Donald Trump’s administration ahead of the 2026 midterm elections.

Ironically, homebuilders are among those pitching housing affordability solutions to the White House.

Firms are constructing a proposal for a “Trump Homes” program that would have builders create entry-level homes for the rent-to-own pipeline, Bloomberg previously reported. Lennar is among the companies behind the effort, which targets as many as 1 million homes in the program, or $250 billion worth of housing.

The White House is not actively considering the proposal.

Last month, the president ordered government-sponsored entities Fannie Mae and Freddie Mac to buy up to $200 billion in mortgage-backed securities as part of a bid to improve housing affordability, hoping it could ultimately push down mortgage rates. It did stoke concerns, however, about reviving a strategy that contributed to the firms’ near-collapse and bailout during the 2008 financial crisis.

Trump also announced a plan to ban large institutional investors from purchasing more single-family homes, despite the lack of evidence regarding institutional investors’ effect on prices, as they account for a small fraction of the single-family housing stock (though that proposal has received congressional pushback).

— Holden Walter-Warner