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?WHY IS
RENT HIGH?
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  2. The most expensive markets often issued the fewest permits.
?WHY IS
RENT HIGH?
Supply responsiveness

The most expensive markets often issued the fewest permits.

High price-to-cost ratios cluster toward the low-permitting side of the metropolitan comparison.

REDRAWN FROM STUDY DATAFigure 8 · Price-to-cost ratios and permitting
Figure 8 · Price-to-cost ratios and permittingHigh price-to-cost ratios cluster toward the low-permitting side of the metropolitan comparison. Values digitized from Figure 8; selected metropolitan labels retained in the archived publication; minor reading error is possible.1234House price / construction costPermits per 100 homes, 2000–2013010203040San FranciscoNew YorkLos Angeles
Figure 8 · Price-to-cost ratios and permitting. Values digitized from Figure 8; selected metropolitan labels retained in the archived publication; minor reading error is possible.
Permits per 100 homes, 2000–2013House price / construction cost
33.7
53.2
72.8
92.2
122
141.8
171.7
191.55
211.5
241.42
261.35
291.3
311.25
341.2
371.15
411.1

Source: Glaeser & Gyourko (2018) · Figure 8; PDF p. 37

Data: Values digitized from Figure 8; selected metropolitan labels retained in the archived publication; minor reading error is possible.

Keep in mind: Metros differ in geography, amenities, and demand; this cross-section is evidence of a pattern, not a causal effect.

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The most expensive markets often issued the fewest permits.

High price-to-cost ratios cluster toward the low-permitting side of the metropolitan comparison.

Source
Glaeser & Gyourko (2018)
Figure
Figure 8 · Price-to-cost ratios and permitting · Figure 8; PDF p. 37
Redraw data
Values digitized from Figure 8; selected metropolitan labels retained in the archived publication; minor reading error is possible.
Keep in mind
Metros differ in geography, amenities, and demand; this cross-section is evidence of a pattern, not a causal effect.
View values used in redraw
Values used to redraw Figure 8 · Price-to-cost ratios and permitting
Permits per 100 homes, 2000–2013House price / construction cost
33.7
53.2
72.8
92.2
122
141.8
171.7
191.55
211.5
241.42
261.35
291.3
311.25
341.2
371.15
411.1
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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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