S. Klepper, Economics 73-100, Fall 2011
The price of new homes in the long run is determined by the long-run average cost of producing new homes. Variations in the demand for new homes can contribute to short-run but not long-run changes in price. Consequently, the only thing that could cause new home prices to rise relative to the rate of inflation in the long run is an increase in the average cost of producing new homes above the rate of inflation. The increase in material prices and the series of regulations both would cause average cost to rise by more than the rate of inflation and so could account for the long-term rise in the price of new homes. The other factors (in questions 1, 3, and 5) all bear on the demand for new homes and could not cause the long-term price increase.
Based on this description, the answers to the individual questions are: