House prices soared while physical construction costs stayed comparatively flat.

The gap points away from materials and labor alone as the explanation for high home prices.

FROM THE PAPERFigure 1 · Real construction costs and house prices

Source: Gyourko & Molloy (2015) · Figure 1; PDF p. 4

Keep in mind: The gap also contains land value, location, financing, and other non-structure costs; it is not a regulation estimate by itself.

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The gap points away from materials and labor alone as the explanation for high home prices.

Source: Gyourko & Molloy (2015)
Figure: Figure 1 · Real construction costs and house prices · Figure 1; PDF p. 4
Keep in mind: The gap also contains land value, location, financing, and other non-structure costs; it is not a regulation estimate by itself.

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