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The largest fraction is the value of the land. The land is not more expensive because landlords own it, rather than homeowners. It's expensive because more peop
by spfzero 5y ago
The largest fraction is the value of the land. The land is not more expensive because landlords own it, rather than homeowners. It's expensive because more people want to live on it, whether they own or rent. People want to live in certain areas, due to proximity to jobs, nice weather, transportation etc.
Homeowners speculate too. It would be hard to find someone buying a home who was not considering its future value.
- lucian1900 5y agoIs that true? Arguably the vast majority of the value of the land is also due to speculation. After all, most cities have large numbers of unoccupied homes, owned merely as a financial instrument.
- ipaddr 5y agoI haven't seen any unoccupied home that wasn't under immediate repair in a city in awhile. Not in bigger cities. The prices are going up so vacant places get sold if unneeded.
- lucian1900 5y agoLondon and Dublin famously both have large numbers of luxury homes entirely unoccupied, used as investment vehicles. The number of empty homes in fact exceeds the number of homeless people.
- ipaddr 5y agoThe parent comment said North America. Property rights seem different in England.. if someone moved into that vacant home for 7 years they can claim the right not to be removed. I guess these big homes have security.
- lucian1900 5y agoThey’re mostly luxury flats in central areas, requiring little in the way of security. Squatting is impractical in this case.