DOJ Leadership Overrules Staff on $1.6B Realty Merger
Justice Department leadership overruled staff and allowed a $1.6 billion real-estate merger to proceed, resulting in the brokerages avoiding a merger investigation. The decision exposed an internal rift within the DOJ over whether to scrutinize consolidation in the real-estate brokerage industry.
📌 Key Facts
- Compass and Anywhere Real Estate, the two largest U.S. residential brokerages, completed a $1.6 billion merger on Friday.
- DOJ antitrust enforcers sought to investigate the merger but were blocked by higher‑level Justice Department officials who wanted the deal approved.
- The merger closed far sooner than the roughly nine‑month regulatory timeline the companies had previously forecast when they announced the deal in September.
📊 Relevant Data
In 2024, the real median household income was $121,700 for Asian households, $92,530 for non-Hispanic White households, $70,950 for Hispanic households, and $56,020 for Black households.
Income in the United States: 2024 — U.S. Census Bureau
In 2022, the median net worth was $536,000 for other families (including Asian), $285,000 for White families, $61,600 for Hispanic families, and $44,900 for Black families.
Greater Wealth, Greater Uncertainty: Changes in Racial Inequality in the Survey of Consumer Finances — Federal Reserve
In 2024, the mortgage denial rate was 19% for Black applicants, compared to 11.27% for all applicants.
Black Buyers More Likely to Be Denied Mortgage — LendingTree
U.S. real estate commission rates are typically between 5% and 6%, which is higher than rates in many other developed countries, where they often range from 1% to 3%.
How will the National Association of Realtors settlement affect the cost of selling or buying a home? — Brookings Institution
📰 Source Timeline (2)
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