3 ms·

Land value != property value

• epistasis 6y ago
  Yes, of course, but the high housing costs in the Bay Area come mostly from the cost of land these days. Single family home-owners work to maximize their property values, and though they have made the construction process very expensive, land is most often far more valuable than the structure on it these days. This is quite shocking for most people around the country; when I was shopping around for home insurance quotes probably about a third of the people I talked to commented on how expensive land was. (But not the house, oddly!)