not entirely true, as its a matter of demand and supply.

immigration (as per oz) leads to greater demand and increased prices.

a growing population will push up prices.

also a move from rural to metropolitan areas will push up city prices.

also improvements to the land - houses etc add to its value

of course do we really own the land or does it own us.

howeever i do mostlyagree that:

"Much of the wealth represented by housing is illusory. It is created by government rationing of land. This causes inflation in land prices."

well around cities anyway. u can buy a block of land in the country and built in alot of spots if u dont want services.

however this right winger's real agenda is to get outer suburbs rezoned so his land banking mates can profit!

also a lowering of land values decreases consumer confidence leading to more chance of libs getting back in...

dont forget also that governments dont rezone excessively as they have to provide all the services, roads schools etc

dont forget also the very generous interest tax deductions that investors get that helps price out new buyers.