We explore long-term patterns of the house price-income relationship across the 70 largest U.S. metropolitan areas. In line with a standard spatial equilibrium model, our empirical findings indicate that house price-income ratios are typically not stable even over the long run. In contrast,...

Previous empirical investigations provide evidence of substantial regional variation in the supply elasticity of housing. They further show that the elasticity and its variation across cities within the U.S. are significantly influenced not only by regulatory supply constraints, but also by the...

The long-term price elasticity of supply of housing is a key factor determining the growth rates of housing prices and housing supply as the city grows. Therefore, the housing supply elasticity has considerable influence on the competitiveness of the region and on the growth potentials of the...