Are you familiar with HOA fees? See, there are fully planned communities, where all the common areas ARE priced into HOA fees (they have to be; the HOA covers

Are you familiar with HOA fees? See, there are fully planned communities, where all the common areas ARE priced into HOA fees (they have to be; the HOA covers them, and the lenders DO evaluate the fees to make sure that they either are sufficient, or if they should increase to become so, the home owner will be able to afford them). And people still buy houses in communities with HOAs. That's not "all" externalities, but it already shows that people will happily pay for externalities they can understand. An extra $200 a month to the city? No thank you. A $200 a month HOA fee, that keeps up the common areas and features? There's still a line of people looking to buy the property.