Market Concentration in Homebuilding

65 Pages Posted: 19 Dec 2018

See all articles by Jacob Cosman

Jacob Cosman

Johns Hopkins University - Carey Business School

Luis Quintero

Johns Hopkins University - Carey Business School

Date Written: November 28, 2018

Abstract

We investigate the impact of increasing concentration in local residential construction markets on housing production. We show that the increase in concentration in the past decade has led to lower production volume, fewer units in the production pipeline, and greater unit price volatility. Our results imply that the greater concentration has decreased the annual value of new housing production by $106 billion. Because housing is a determinant of the business cycle these findings provide further evidence that the secular decline in competitive intensity in the American economy is altering macroeconomic dynamics.

Suggested Citation

Cosman, Jacob and Quintero, Luis, Market Concentration in Homebuilding (November 28, 2018). Johns Hopkins Carey Business School Research Paper No. 18-18. Available at SSRN: https://ssrn.com/abstract=3303984 or http://dx.doi.org/10.2139/ssrn.3303984

Jacob Cosman (Contact Author)

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

Luis Quintero

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

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