Real estate is a fiercly competitive business — no matter how you look at it. In fact, it closely resembles a perfectly competitive industry structure with production at the lowest possible cost and consumers benefiting from competitively determined prices.
However, a number of policymakers, analysts and media observers have drawn attention to misguided claims that the industry is not competitive. They suggest that there could be collusion among agents, firms and others involved in the industry to control access to information, artificially set commission rates and block entry into the business.
Rather than just "say it isn't so," NAR economists took a close look at the facts. They analyzed the structure of the real estate marketplace and developed a well-documented explanation demonstrating that contrary to what the critics say, real estate is the model of competition.
On Nov. 28, 2005, NAR submitted the document to the U.S. Department of Justice and the Federal Trade Commission as part of NAR's comments following up on a DOJ/FTC Workshop on "Competition and Real Estate Workshop" held earlier this fall.
View and download the 26-page report:
Structure, Conduct and Performance of the Real Estate Brokerage Industry(200KB PDF)
See the NAR Comment Letter to DOJ/FTC
See a related NAR News Release