A recent tweet by Nat Purser, a government affairs policy advocate at Public Knowledge, has ignited discussion within antitrust and urban development circles, highlighting a perceived symbolic divide that influences how antimonopoly advocates view urban issues like YIMBYism (Yes In My Backyard). Purser suggested that for some, the focus on urban development stems from a symbolic association: "small towns = small biz = moral economy. big cities = big biz = corporate capture."
The tweet, shared by Purser, underscores a perspective that links the perceived moral integrity of smaller economies with the physical landscape of small towns, contrasting it with large cities seen as breeding grounds for corporate dominance and market manipulation. This viewpoint suggests that concerns over corporate power extend beyond traditional industry sectors into the realm of urban planning and housing.
Antitrust advocates increasingly argue that consolidation in the housing market, particularly among large corporate landlords and homebuilders, contributes to rising housing costs and reduced supply. Senator Amy Klobuchar (D-MN), Chairwoman of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, has voiced concerns about the impact of corporate acquisitions on housing affordability. She noted that the number of starter homes built has plummeted since the 2008 financial crisis, leading to reliance on fewer, larger corporate homebuilders who often prioritize high-end homes.
This perspective suggests that the housing crisis is not solely a supply-side issue but also one influenced by concentrated market power. Research indicates that corporate landlords have increased their ownership of rental housing since the 2008 financial crisis, with some studies developing antitrust frameworks to measure market structure in housing. These studies point to strategies like rapid acquisition and integration between housing subsectors as ways firms gain market power and extract higher rents.
While YIMBYism generally advocates for increased housing supply through deregulation and upzoning to address affordability, some antimonopoly thinkers view the movement through the lens of market concentration. They argue that even with increased development, if a few large entities control the market, the benefits may not translate into truly affordable housing or a more equitable distribution of wealth. This creates a complex intersection where housing policy and antitrust concerns converge, challenging traditional understandings of economic fairness in urban environments.