Official statistics show that the real cost of constructing a home has essentially doubled over the past 10 years. That could indicate that homes are now much better quality than in the past, but it could also be a sign of inefficiencies in the homebuilding sector. Regardless, if costs had remained constant in real terms, all else equal, housing starts today would be back above their pre-crisis high.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services