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.
Source: The Wall Street Journal