Book excerpt: This paper explores in some detail regional disparities in the price of housing. It explores the theoretical reasons why rates of house price inflation are more likely to vary across regions than those of more tradable goods and services. It provides an overview of regional house price inflation disparities in relation to disparities in the general inflation rate. It also considers the role of regional demand shocks. Finally it ascertains the extent to which regional house prices are influenced by both local and national factors.