Over the last two decades, New Zealand experienced a threefold increase in housing prices. The largest surge in prices … in recent years occurred between 1998 and 2007, a period of housing price growth in many developed economies. Since 2007 …, housing price growth remained flat until 2011, and then prices once again embarked on an upward trend. However, recent housing …

This paper develops a growth model with land, housing services, and other goods that is capable of explaining a … substantial portion of the movements in housing prices over the past forty years. Under certainty, the model exhibits a balanced …—both qualitatively and quantitatively—the large low-frequency changes in housing price trends. In particular, the model shows how housing …