Signal
Land prices have reportedly risen much faster than construction and labour costs over the long term.
Why it matters
This shifts the housing problem upstream.
If land inflates faster than building, then construction productivity alone cannot restore affordability.
The system must also change how it uses land.
That means the housing response cannot rely only on:
- faster building
- cheaper building
- reduced labour intensity
It also has to address lot structure, land release, density distribution, and the geometry of what is being delivered.
System angle
Better building cannot fully solve bad lot economics.
A realistic response may require two moves together:
- increasing the share of small lots
- introducing mid-rise housing in the right places
That is not a stylistic choice. It is a land-efficiency strategy.