Big Builders Are Remodeling the Housing Market

One of the big mysteries of the housing market since the financial crisis is why sales of new homes have remained so low despite a strong economy and real-estate market. One explanation is a major consolidation among homebuilders, which has given surprising power to some of the big publicly traded companies. That is a big change in what has long been a heavily fragmented industry driven at the margins by small-time construction companies that built like crazy during boom years. With its historically low barriers to entry — a bit of capital and know-how were the major requirements for breaking into the business — this marks a major change in the industry.

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Source: The Wall Street Journal