Unfortunately none of the modern economic theories apply to real estate, because it is a land market in disguise and has little to do with housing. Price of la

Unfortunately none of the modern economic theories apply to real estate, because it is a land market in disguise and has little to do with housing. Price of land is determined when looking at the world as a whole (margin of production), so it can't be measured in a simple microeconomic laboratory experiment. It can actually be studied using models, but one would have to go back to Smith and Ricardo and add the third factor of production (land) back into the equation. Which was removed by marginalists for simplification to study simple markets of bananas and yogurts. The modern economic foundations simply don't have the tools to study land markets, so they will always fall into the trap of a drunk man looking for keys under the lamppost only.