Building Costs and House Prices
Working Paper 33958
DOI 10.3386/w33958
Issue Date
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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