Housing prices and rents outpaced construction costs across market types.

The gap is largest in superstar cities, but it appears in suburbs, central cities, and smaller counties too.

FROM THE PAPERFigure 2 · Indexed housing costs, prices, and rents

Source: Baum-Snow & Duranton (2025) · Figure 2; PDF p. 10

Keep in mind: The national trends summarize many markets and mechanisms; they do not identify a single policy effect.

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The gap is largest in superstar cities, but it appears in suburbs, central cities, and smaller counties too.

Source: Baum-Snow & Duranton (2025)
Figure: Figure 2 · Indexed housing costs, prices, and rents · Figure 2; PDF p. 10
Keep in mind: The national trends summarize many markets and mechanisms; they do not identify a single policy effect.

Too many people are chasing too few homes. See why—and what communities can do about it.