PURPOSE: A key criticism of ‘mainstream economics’ is that, by emphasising equilibrium, and focusing on market outcomes, it neglects matters of process leading to those outcomes. There is thus significant interest within the heterodox economics tradition in matters of process. This paper applies/extends John Latsis’ economic process theory (EPT) to the analysis of real estate markets. The purpose is to shed light, both on the analytical value of EPT, and on how real estate markets may be more fruitfully analysed.

METHOD/APPROACH: This is a theoretical contribution, and involves an explication, adaptation and application of Latsis’ EPT to the analysis of real estate markets.

FINDINGS: The paper argues that EPT brings into view key empirical variables regarding the functioning of real estate markets that are inaccessible or invisible from the perspective of conventional analyses of these markets. The focus of the later on market outcomes (such as prices, rentals, yields, vacancies etc.) leaves much of the actual operation of real estate markets hidden from view.

PRACTICAL IMPLICATIONS: The paper provides an analytical framework and language that is useful for the empirical study of real estate markets, in the process bringing new insights to this field of study. This opens the way for new research pathways into the behaviour of research markets in different contexts.

ORIGINALITY/VALUE OF WORK: This paper makes a contribution to the growing literature on economic process. The originality of the paper is that it represents the first attempt at extending the reach of EPT specifically to the analysis of real estate markets.