Building Costs and House Prices
We take a long, broad, and theoretically agnostic view toward the connection between building costs and house prices in the US housing market. We find that building costs have never had all that much explanatory power over US housing prices, but even the imperfect correlations of the past have weakened further in recent decades along multiple dimensions.
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Copy CitationBrian Potter and Chad Syverson, "Building Costs and House Prices," NBER Working Paper 33958 (2025), https://doi.org/10.3386/w33958.Download Citation
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Published Versions
Brian Potter & Chad Syverson, 2025. "Building Costs and House Prices," Journal of Economic Perspectives, American Economic Association, vol. 39(3), pages 67-86, Summer, DOI: 10.1257/jep.20241432. citation courtesy of 
Brian Potter & Chad Syverson, 2025. "Building Costs and House Prices," Journal of Economic Perspectives, vol 39(3), pages 67-86.
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