An antitrust framework for housing

Abstract

This article contributes to debates within the financialization literature by examining the rise of monopolies in the US’ rental housing market. Drawing on a dataset of multifamily real estate transactions taken from the poorest census tracts in the US (so-called Opportunity Zones), we develop an antitrust framework and methodology for measuring market structure in housing using the Herfindahl-Hirschman Index. After detailing the geography of these market dynamics, we assess the specific strategies firms use to acquire market power and extract monopoly rents. This analysis reveals three critical aspects of real estate investors’ anticompetitive conduct: integration between housing subsectors, acquisition strategies that rapidly scale up ownership, and corporate forms that promote cooperation. The framework developed in this article and subsequent findings offer three directions policymakers, regulators, and activists can take to reform antitrust law and better ensure affordable housing.