How local regulations greatly affect a home’s “shadow” price

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August 21, 2014

The Washington Post reports that the price of a home is more than just the cost of the land, location, materials, and labor. After several economists calculated the costs of building homes in cities across the United States, they found that a “shadow” price greatly affects how much a home costs, especially in the usual suspect cities such as Boston and San Francisco, where it is more difficult to build given local regulations.

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