Journalist Derek Thompson, co-author of the book "Abundance," has issued a strong rebuttal to antitrust critics who assert that homebuilding oligopolies are intentionally suppressing housing supply and inflating prices. In a recent newsletter, Thompson detailed his investigation into these claims, stating he contacted the critics' own sources to verify their assertions.
"Antitrust critics of Abundance claim homebuilding oligopolies are holding back supply and driving up prices," Thompson stated in his tweet announcing the newsletter. He added, "I did something simple. I called up their sources. Everyone I spoke to told me the same thing: Their claims are bullshit."
Thompson's "Abundance" book, co-authored with Ezra Klein, posits that legal barriers to construction, such as restrictive zoning laws and minimum lot sizes, are the primary bottlenecks in homebuilding. This perspective contrasts sharply with the antitrust argument, which attributes housing affordability issues to the market power of large homebuilders. Critics like lawyer and writer Basel Musharbash have argued that big homebuilders abuse their power, citing analyses of markets such as Dallas, Texas.
Thompson's newsletter directly challenges the methodology and findings of these antitrust critiques. He specifically addresses Musharbash's essay on Dallas, calling it "filled with out-of-context quotes, overconfident assertions lacking evidence, and generally misguided claims." The debate underscores a significant ideological divide within progressive circles regarding the root causes of America's housing crisis and the most effective policy solutions.
The journalist's direct engagement with the sources cited by antitrust advocates aims to shift the focus back to regulatory hurdles rather than corporate concentration. This ongoing discussion highlights the complexity of housing economics and the differing views on how to increase housing abundance and affordability across the United States.