This paper explores the relevance of path dependence concepts as an alternative approach to the interpretation of real estate markets, their structures, outcomes and evolutionary paths. Path dependence offers an alternative analytical perspective to the standard paradigm of neoclassical economics. It suggests that market structures and outcomes are dependent on initial conditions. As a result markets and whole business systems become ëlocked-iní by historical events. Therefore a focus on such issues becomes essential as a means of understanding market structures and outcomes, market efficiency and the potential for market failures. Using this framework for analysis the paper considers two potential sources of path dependency in real estate markets. Firstly, the physical and durable nature of the built environment and secondly the market decision rules that govern the transactions environment in individual real estate markets. The paper concludes with an assessment of the insights gained by a path dependence approach to the analysis of real estate markets.