Homebuilder stocks fall after potential antitrust probe report

Investing.com -- Shares of major U.S. homebuilders fell Friday following a Bloomberg report that the White House is considering launching an antitrust investigation into the industry amid concerns about housing affordability.

Lennar Corp. (NYSE: LEN), D.R. Horton (NYSE: DHI), Toll Brothers (NYSE: TOL), KB Home (NYSE: KBH), Beazer Homes (NYSE: BZH), PulteGroup (NYSE: PHM), and Hovnanian Enterprises (NYSE: HOV) all declined up to 3% after the news broke.

According to the report, the Department of Justice could open a probe in the coming weeks, though no final decision has been made. The potential investigation would examine how information is shared through the industry trade group Leading Builders of America, whose members include Lennar and D.R. Horton.

Officials are reportedly concerned that the trade group could be used to restrict housing supply or coordinate pricing among builders. The exploration of an antitrust investigation comes as the Trump administration intensifies its focus on addressing the nation’s housing affordability crisis.

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