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