Housing Prices & Construction Costs

A query from Steve got me curious about how the ratio between housing prices & residential construction costs might have varied over the years.  Fig. 1 plots the ratio of Case-Shiller indexes & the Census Bureau’s Fisher Index of New One-Family Houses Under Construction, for each month from January 1987 through April 2009.  For comparison purposes, I’ve also plotted the ratio of Case-Shiller to CPI (with 2005 = 100).

Housing Prices & Construction Costs INote:  CS10 = Case-Shiller 10-City Index; CS20 = Case-Shiller 20-City Index

Fig. 2 takes a longer view, plotting the ratio of Robert Shiller’s Real Home Price Index & Real Building Cost Index for 1890-2005.

Housing Prices & Construction Costs II


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