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?WHY IS
RENT HIGH?
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  2. Housing prices and rents outpaced construction costs across market types.
?WHY IS
RENT HIGH?
The affordability problem

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.

REDRAWN FROM STUDY DATAFigure 2 · Indexed housing costs, prices, and rents
Figure 2 · Indexed housing costs, prices, and rentsThe gap is largest in superstar cities, but it appears in suburbs, central cities, and smaller counties too. Values digitized from Figure 2; four original market panels condensed to the principal national comparison in the archived publication; minor reading error is possible.100150200250300Real index (1980 = 100)YearSuperstar-city pricesNational rentsConstruction costs19801990200020102020
Figure 2 · Indexed housing costs, prices, and rents. Values digitized from Figure 2; four original market panels condensed to the principal national comparison in the archived publication; minor reading error is possible.
YearSuperstar-city pricesNational rentsConstruction costs
1980100100100
1985112108102
1990125116104
1995132121106
2000155132109
2005245147116
2010210155119
2015255169124
2020305190135

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

Data: Values digitized from Figure 2; four original market panels condensed to the principal national comparison in the archived publication; minor reading error is possible.

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

Share the evidence

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.

Source
Baum-Snow & Duranton (2025)
Figure
Figure 2 · Indexed housing costs, prices, and rents · Figure 2; PDF p. 10
Redraw data
Values digitized from Figure 2; four original market panels condensed to the principal national comparison in the archived publication; minor reading error is possible.
Keep in mind
The national trends summarize many markets and mechanisms; they do not identify a single policy effect.
View values used in redraw
Values used to redraw Figure 2 · Indexed housing costs, prices, and rents
YearSuperstar-city pricesNational rentsConstruction costs
1980100100100
1985112108102
1990125116104
1995132121106
2000155132109
2005245147116
2010210155119
2015255169124
2020305190135
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?WHY IS
RENT HIGH?

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

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