4 ms·

I believe in most cases the structure value does go down (or at most stay constant), it is the value of the land that is going up.

• cudgy 4y ago
  Land should also go down (generally) in price though if the supply of buildable land goes up along with reduced supply restrictions. Of course, this only works in areas where there is abundance of buildable land near the desirable locations or nearby buildable areas that provide a decent substitute. Obviously, areas like the San Francisco peninsula and Manhattan where there is limited land due to surrounding water, land prices are likely to continue to go upward.
  • credit_guy 4y ago
    Manhattan is surrounded by water, but guess what, there are subways that go to Brooklyn, Queens, the Bronx, Jersey City and Hoboken. If your office is in downtown Manhattan, you can get there faster if you live in Brooklyn than if you live in Haarlem (which is part of Manhattan). In principle the supply side has natural constraints, but they are easily 2 times above what has been built until now. You can think of it this way: the population density of Manhattan is about 27000/km2. The entire NYC has a density of about 10000/km2, while Jersey city has 7000/km2.
    • cudgy 4y ago
      We agree. Those would be “nearby buildable areas that provide a decent substitute”.