What makes homes expensive

REDRAWN FROM STUDY DATAFigure 1 · Real construction costs and house prices

Share the evidence

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.

Source: Gyourko & Molloy (2015)
Figure: Figure 1 · Real construction costs and house prices · Figure 1; PDF p. 4
Redraw data: Values digitized from Figure 1 in the archived publication; minor reading error is possible.
Keep in mind: The gap also contains land value, location, financing, and other non-structure costs; it is not a regulation estimate by itself.

View values used in redraw