A house is a bundle comprising a physical structure and the plot of land upon which the house is built. Thus changes in house prices reflect changes in the cost of structures and value of land. In this paper we apply this insight to construct the first constant-quality price and quantity indexes...

In this paper, we construct the first constant-quality aggregate price index for the stock of residential land in the United States. In the process, we uncover four main results: (a) since 1970, residential land prices have risen nearly twice as fast, but also have been twice as volatile as...

In the United States, the percentage standard deviation of residential investment is more than twice that of non-residential investment. In addition, GDP, consumption, and both types of investment co-move positively. We reproduce these facts in a calibrated multi-sector growth model where...