The price and quantity of residential land in the United States

Morris A. Davis; Jonathan Heathcote

doi:10.1016/j.jmoneco.2007.06.023

The price and quantity of residential land in the United States

Morris A. Davis, Jonathan Heathcote

Research output: Contribution to journal › Article › peer-review

198 Scopus citations

Abstract

One can conceptualize a house as a bundle comprising a reproducible tangible structure and a non-reproducible plot of land. When the value of a home is decomposed this way, land capitalizes the market value of a home's location. We develop a formal relationship between the dynamics of house prices, structures costs and land prices, and thereby construct the first constant-quality price and quantity indexes for the aggregate stock of residential land in the United States. In a range of applications we show that these series can shed light on trends, fluctuations and regional variation in the price of housing.

Original language	English (US)
Pages (from-to)	2595-2620
Number of pages	26
Journal	Journal of Monetary Economics
Volume	54
Issue number	8
DOIs	https://doi.org/10.1016/j.jmoneco.2007.06.023
State	Published - Nov 2007
Externally published	Yes

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

Keywords

House prices
Land
Land prices
Land value

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10.1016/j.jmoneco.2007.06.023

Cite this

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AB - One can conceptualize a house as a bundle comprising a reproducible tangible structure and a non-reproducible plot of land. When the value of a home is decomposed this way, land capitalizes the market value of a home's location. We develop a formal relationship between the dynamics of house prices, structures costs and land prices, and thereby construct the first constant-quality price and quantity indexes for the aggregate stock of residential land in the United States. In a range of applications we show that these series can shed light on trends, fluctuations and regional variation in the price of housing.

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The price and quantity of residential land in the United States

Abstract

All Science Journal Classification (ASJC) codes

Keywords

Access to Document

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