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That would stop new building construction. Many would convert existing structures if possible to another structure type. Land value will drop to a level where
by wolco 7y ago
That would stop new building construction.
Many would convert existing structures if possible to another structure type.
Land value will drop to a level where rent is affordable. No matter what the owner will rent out the unit for costs (including taxes) + profit.
- djrobstep 7y agoQuite the opposite, it would promote new high density building construction, because the incentive is to maximize utilization to spread the costs. For instance, owners of a single family home on a given piece of land would pay five times as much as 5 apartments on that land, because each apartment would only pay 20% each.