Shares of major U.S. homebuilders experienced a downturn on Friday following reports of a potential antitrust probe. The news, originating from a Bloomberg report, suggests the White House is considering an investigation into the industry. Concerns regarding housing affordability are said to be driving the potential probe. Stocks like Lennar Corp. and D.R. Horton saw declines after the report surfaced.

The Department of Justice could launch the investigation in the coming weeks. The focus would be on information sharing through the Leading Builders of America trade group, which includes major players. Officials are reportedly worried the group could be used to limit housing supply or coordinate pricing. This potential investigation comes as the government aims to address the housing affordability crisis.

This potential probe reflects broader government scrutiny of industries impacting housing costs. Antitrust investigations can lead to significant changes in market practices, potentially impacting profitability and business models. Investors are now watching to see if a formal investigation is announced and, if so, what its scope might be, and the potential impact on home prices.