Most Manhattan condos sold far above physical construction cost.

The distribution places most units above a price-to-cost ratio of one, with many between roughly two and four.

FROM THE PAPERFigure 2 · Manhattan price-to-cost ratios

Published cumulative distribution of condominium price-to-construction-cost ratios in Manhattan.

Source: Glaeser, Gyourko & Saks (2005) · Figure 2; PDF p. 52

Keep in mind: Price above construction cost can reflect land and amenities as well as regulation; the paper uses additional evidence to interpret the wedge.

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Most Manhattan condos sold far above physical construction cost.

The distribution places most units above a price-to-cost ratio of one, with many between roughly two and four.

Source: Glaeser, Gyourko & Saks (2005)
Figure: Figure 2 · Manhattan price-to-cost ratios · Figure 2; PDF p. 52
Keep in mind: Price above construction cost can reflect land and amenities as well as regulation; the paper uses additional evidence to interpret the wedge.

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