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Construction Costs And The Supply Of Housing Structure

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Author Info
Joseph Gyourko
Albert Saiz

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Abstract

Construction costs account for the bulk of the price of new houses in most markets, but their study has been relatively neglected. We document that there are economically large differences in construction costs across U.S. housing markets. We also estimate a very elastic supply for physical structure; hence, differences in construction activity across markets do not explain the variation in costs. Supply shifters that collectively do account for differences in building costs include the extent of unionization within the construction sector, local wages, local topography in terms of the presence of high hills and mountains, and the local regulatory environment. Copyright Blackwell Publishing, Inc. 2006

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9787.2006.00472.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Regional Science.

Volume (Year): 46 (2006)
Issue (Month): 4 ()
Pages: 661-680
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:jregsc:v:46:y:2006:i:4:p:661-680

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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  1. Glaeser, Edward L., 2008. "The Economic Approach to Cities," Working Paper Series rwp08-003, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  2. Krupka, Douglas J., 2008. "On Amenities, Natural Advantage and Agglomeration," IZA Discussion Papers 3598, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Elias Oikarinen, 2009. "Dynamic linkages between housing and lot prices: Empirical evidence from Helsinki," Discussion Papers 53, Aboa Centre for Economics. [Downloadable!]
  4. Edward L. Glaeser & Joseph Gyourko, 2006. "Housing Dynamics," NBER Working Papers 12787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Joseph Gyourko & Christopher Mayer & Todd Sinai, 2006. "Superstar Cities," NBER Working Papers 12355, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Douglas J. Krupka & Kwame Donaldson, 2007. "Wages, Rents and Heterogeneous Moving Costs," IZA Discussion Papers 3224, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," NBER Working Papers 14806, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Byron F. Lutz, 2009. "Fiscal amenities, school finance reform and the supply side of the Tiebout market," Finance and Economics Discussion Series 2009-18, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
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This page was last updated on 2009-11-22.

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