New Single-Family Housing Construction
New Single-Family Housing Construction
New Single-Family Housing Construction:
The market for single-family housing construction closely resembles a market of perfect competition. The market primarily consists of a large number of smaller scale firms who face a high level of competition within their regions. There are few barriers for entry into the single-family housing construction market, which is another resemblance of perfect competition. However, although the only real physical barrier is obtaining a license and registration to build, it can be difficult to quickly establish a place in the market since reputation plays a major role in the basis for market competition. Firms in this market have little to no market power due to the large number of players. In fact the largest firm in the market, “Pulte Homes Inc,” holds only three percent of the market share. Further more the top seven firms combined, hold less than twelve percent of the market share. If there were any form of market power it would be gained primarily through large-scale firms marketing their services as a means of gaining more market share. However as I mentioned, this would be difficult to do because of the vast amount of firms in the market.
Highway, Street, and Bridge Construction:
The market for highway, street and bridge construction closely resembles a market of perfect competition. There is a large amount of small-scale