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You wouldn't need to force higher densities as it would naturally occur for high-value inner-city land. If the government taxes your economic land rents, it inc
by spangry 11y ago
You wouldn't need to force higher densities as it would naturally occur for high-value inner-city land. If the government taxes your economic land rents, it increases the opportunity cost of using high value land in unproductive ways.
- roymurdock 11y agoLVT doesn't affect the supply side. Cities would need to reform zoning laws and deregulate building codes that specify maximum density. The housing market is far from a self-regulating, equilibrium-seeking free market. It is very heavily regulated. Landlords would love to increase SF density so they could pack more people in while extracting NY-level rents. They can't because it's currently illegal.
- spangry 11y agoAlthough I agree it doesn't result in increased supply of land, an LVT results in more efficient allocation of existing supply, which is economically equivalent to an increase in supply holding allocative efficiency constant. And I 100% agree on land-market regulations. It seems to be a similar story in most first-world economies: regulations are artificially constraining land supply, and also causing inefficient use of existing land.