Compass-Anywhere deal may exceed DOJ market-share limits in some cities
Summary
The proposed merger of Compass and Anywhere Real Estate could create significant market share concentration in several U.S. cities, potentially impacting commission rates and the number of brokerages. Hosts in these areas may see changes in the real estate market. It's important to monitor these developments as they could indirectly affect property values or local market dynamics.
Key Insights
- •A combined Compass and Anywhere would have market share percentages of: Los Angeles: 40%, Raleigh: 46%, Houston/Austin: Over 50%, Honolulu: 54%, Seattle: 57%, Denver/Boulder: 60%, Brooklyn/Washington D.C./Boston: Over 60%, San Francisco: 64-65%, Nashville: Close to 70%, Newport Beach, CA/Manhattan: Over 80%.
- •The proposed merger of Compass and Anywhere could result in market share above presumptively illegal thresholds in at least a dozen states, based on a 2023 DOJ/FTC Merger Guidelines (30% market share).
Action Items
- ✓Monitor the real estate market for potential shifts in commission rates or reduced brokerage options as a result of the merger.Effort: lowImpact: low
- ✓Stay informed about the merger's progress and potential impacts in your local market, particularly if you own properties in areas with high market share concentration.Effort: lowImpact: medium
Common Mistakes
- ⚠Failing to monitor real estate market changes in areas where you own STR properties could mean you miss opportunities or are caught off guard by shifts in market dynamics or property values.
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