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Productivity has been increasing. The amount of land is fixed. In such a scenario, I would definitely expect the value of land to increase.
by rcme 4y ago
Productivity has been increasing. The amount of land is fixed. In such a scenario, I would definitely expect the value of land to increase.
- ClumsyPilot 4y agoUk is a densely populated country, and 95% of land is just empty - field, forest, whatever. Only 5% of land is built on.
- rcme 4y agoSure, but you also have to consider the proximity to where the productivity gains are happening. The median household income has increased 4 times over in SF since 1990 (30K - 120K). Do you really expect property values in SF to stay the same? And of course, that's just the median. At the high end, the difference is even more pronounced. https://fred.stlouisfed.org/series/MHICA06075A052NCEN https://fred.stlouisfed.org/series/MHICA06075A052NCEN