The price and quantity of residential land in the United States

Morris A. Davis, Jonathan Heathcote

Research output: Contribution to journalArticlepeer-review

198 Scopus citations


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 languageEnglish (US)
Pages (from-to)2595-2620
Number of pages26
JournalJournal of Monetary Economics
Issue number8
StatePublished - Nov 2007
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


  • House prices
  • Land
  • Land prices
  • Land value


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