Top groups representing homebuilders have responded to a report that the Trump administration is considering an antitrust probe into the industry, saying any allegations of price fixing are baseless.

The Department of Justice is considering launching an antitrust probe into homebuilders in the coming weeks, although no final decision has been made and the administration may scrap the effort, sources familiar with the matter told Bloomberg.

The probe may focus on an association of major publicly traded homebuilders, the Leading Builders of America, amid concerns that the group could be used to restrict housing supply or coordinate pricing, the report claimed.

Leading Builders of America CEO Ken Gear tells Realtor.com® that the group has not been contacted by the DOJ regarding the possible inquiry, and says the association is solely focused on policy matters.

“It is the policy of the Leading Builders of America (“LBA”) to conduct its meetings and operations in strict compliance with federal and state antitrust laws. Our sole focus is on public policy matters affecting the homebuilding industry,” Gear said in a statement.

“We have not been contacted by any government officials about this rumored inquiry. We will continue to work with policy makers at all levels of government to help solve our country’s home affordability crisis,” added Gear.

The National Association of Home Builders, the nation’s largest trade association for builders, has not been named as a potential target of the probe. Still, NAHB Chairman Buddy Hughes questions the factual basis of any collusion claims.

Hughes notes that there are more than 77,000 homebuilding firms operating across the country, the vast majority of which are small businesses averaging 10 homes or less per year.

“The housing market is struggling due to larger economic pressures on consumers. As a result, homebuilders are lowering prices,” he tells Realtor.com.

New-home prices have been trending down since late 2022, and as a result, new homes are now cheaper than existing homes, reversing long-standing trends.

In a recent NAHB survey, 40% of builders reported cutting prices in January and 65% used sales incentives such as mortgage rate buydowns or closing cost assistance, notes Hughes.

“The key to making homes more affordable is to increase housing supply,” says Hughes. “That will take government working with homebuilders not against them.”

The White House referred request for comment on the potential probe to the DOJ, which declined to comment when reached by Realtor.com.

The reported consideration of an antitrust investigation into homebuilders follows a flurry of proposals on housing affordability from the Trump administration, few of which have moved forward so far.

Among the ideas that have been floated by the administration and later seemingly discarded were 50-year mortgages and penalty-free early withdrawal from 401(k) accounts to fund a down payment.

More recently, Bloomberg reported that some homebuilders were considering a plan to build entry-level “Trump Homes” using a rent-to-own model, although administration officials have said they are not actively considering the plan.

President Donald Trump has made remarks on housing affordability that are at times contradictory, promising “aggressive” housing reform this year, but more recently vowing to drive home prices up to benefit current homeowners.

Such conflicting messaging has at times made it difficult to parse whether the administration views the homebuilders as an ally or a scapegoat in the housing crisis.

Trump in October singled out homebuilders in a Truth Social post comparing them to the OPEC cartel of oil producing nations, suggesting without evidence that builders were colluding to drive prices higher.

“They’re my friends, and they’re very important to the SUCCESS of our Country, but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD,” wrote Trump. “I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!”

In fact, the supply of new homes for sale remains near its highest level in 18 years, as builders have struggled to turn over inventory despite price cuts and incentives.

“What we are really seeing among builders is eagerness to sell,” says Realtor.com senior economist Joel Berner. “Price cuts and buyer incentives are rampant in the new home market, and builders seem to be genuinely competing for a smaller pool of buyers, not conspiring against them.”

The Realtor.com economic research team has estimated that the country has a housing shortage of nearly 4 million units, and says that closing this supply gap is the best way to improve affordability.

“Adding supply is the only long-term solution to the housing crisis, so the administration would do better to support builders than antagonize them,” says Berner.