Insights into Economists' Thought Processes

Historically, one major reason has consistently been cited for the growth in housing costs in this country: the rising cost of building homes. But that relationship is changing. In this episode, University of Chicago economist Chad Syverson breaks down 75 years of data to reveal a surprising truth—construction costs and housing prices have become "completely decoupled." From the post-WWII boom to today's record-breaking market, Syverson explains why building materials and labor costs can no longer explain skyrocketing home prices, and what factors are really driving the housing affordability crisis.