The Trump administration is considering an antitrust investigation into home builders, and the residential construction index has turned down

The Trump administration is intensifying efforts to address the U.S. housing affordability crisis, with officials exploring whether to launch an antitrust investigation into U.S. home builders.

According to media reports citing informed sources, the U.S. Department of Justice may initiate this investigation in the coming weeks. A final decision has not yet been made, and the Trump administration may also abandon this action without formally filing a case.

A potential focus of the investigation is the information-sharing practices within the industry trade organization "Leading Builders of America." Members of this organization include Lennar Corp. and D.R. Horton Inc. Officials are increasingly concerned that there may be restrictions on housing supply or coordinated pricing.

The S&P Composite 1500 Homebuilding Index turned from gains to losses, dipping as much as 1.4% during the session. Lennar and Horton were among the worst-performing stocks in the index.

The Trump administration's attention to home builders comes at a time when the cost of purchasing a home in the U.S. is at its highest level in decades. The housing boom during the COVID-19 pandemic, followed by interest rate hikes, has put significant pressure on homebuyers. For builders, this is also a fragile time, with unsold housing inventory remaining high.

Last October, Trump issued a warning to the industry through a social media post, comparing large home builders to the Organization of the Petroleum Exporting Countries (OPEC), which has significant control over the oil market.

Trump wrote: "What they are doing is wrong, but it is now playing out in another form. This time it is our nation's large home builders. They are my friends and critical to our nation's success, but now that they can obtain financing, they must start building homes."

Home builders have been seeking ways to collaborate with the White House to improve housing affordability. According to previous media reports, one proposal under discussion is a massive initiative called "Trump Homes," aimed at adding up to 1 million housing units to the supply.

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