Consolidation Likely for Public Homebuilders?

New York, NY, Aug. 31, 2011 -- The Wall Street Journal is speculating that the homebuilding industry, specifically publicly traded companies, might have to consolidate to survive, if the market doesn't pick up soon.

The Journal noted that home builders have been able survive by cutting employees and shrinking their product mix while also benefiting from tax breaks.

However, the market shows no signs of improving.

On Tuesday, shares of homebuilder Hovnanian closed at $1.75 and Beazer ended at $2.19.