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Does greater labour market freedom lead to lower new home prices in the US? An exploratory inquiry

ABSTRACT In this study for the year 2014 for the United States, we find that the median price of new single-family homes was an increasing function of the state’s median family income, the number of miles of coastline in the state and the state’s population density. In addition, the evidence suggests that the median new home price may been a decreasing function of the crime rate. Finally, of particular interest to this study, is the finding that a higher degree of labour market freedom led to lower prices on newly constructed single-family homes.