The Price Elasticity of the Housing Market

The price elasticity is a great line because it explains how reactive the house building and development sector respond to a price change. What stunned me in that paper was the increase in the price of bare sections in Hamilton of 650% over a period of 19 years. That seems to have been one of the main causes for the prices of house and land packages, if you like, or traditional standalone homes going up so much. How was it that land prices have exploded so much in the last 20 years?