The US house market structure is complex, with various factors influencing its dynamics. Research suggests that the residential real estate brokerage industry is competitive, with no evidence of market concentration problems in medium and large markets. However, small markets tend to have higher Herfindahl-Hirschman Index (HHI) scores, indicating potential competition issues.
*Key Market Structures:*
- *Pure Monopoly*: Single seller controls supply and price, often government-regulated (e.g., utilities).
- *Pure Competition*: Many buyers and sellers, prices determined by demand and supply (e.g., street vendors).
- *Monopolistic Competition*: Differentiated products, many firms (e.g., Nike shoes).
- *Oligopoly*: Few sellers, products similar but not identical (e.g., Coca-cola and Pepsi).
In the US housing market, factors like market concentration, competition, and regulatory frameworks shape the industry's structure and pricing mechanisms ¹ ².