House-price rises fastest in the world
A housing development in Round Rock, Texas.
Roschetzky Photography/Bigstock
An article in The Australian highlighted a study on historical trends in house prices appearing in this month’s issue of the American Economic Review. In No Price Like Home: Global House Prices, 1870-2012, the authors track house prices over the last 150 years in 14 advanced economies. They find that prices were mostly flat before World War II but have been surging in many countries since then, thanks mostly to rising land prices.