Tyler Cowen has a very interesting post on what he calls The Great Real Estate Recalculation, ending with this:
It is not hard to imagine how The Great Real Estate Recalculation should proceed. But it will take decades to occur… In the meantime, land economics will rise in importance as a field of economics, whether or not the profession realizes it.
I agree on the scope of the problem. I’m less convinced that it will take decades to resolve. The same technology that necessitates the recalculation (by disrupting the retail sales channel) may be key to resolving it.