Rethinking the Economics of Land and Housing

By Josh Ryan-Collins, Laurie McFarlane and Toby Lloyd

Why are house prices in many advanced economies rising faster than incomes? Why isn’t land and location taught or seen as important in modern economics? What is the relationship between the financial system and land?

The authors provide an accessible but provocative refresh to the economics of land and housing. Drawing on the classical tradition the authors trace the problems of modern economies - including housing crises, financial instability and growing inequalities - back to the land economy.

Demonstrating the absence of land from both housing policy and economic theory, the authors argue that in order to tackle these increasingly pressing issues a major rethink by both politicians and economists is required.

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