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So if the most valuable use is luxury apartments and stores that would be what everything needs to converge to? Feels like a tax always looking towards the most

So if the most valuable use is luxury apartments and stores that would be what everything needs to converge to? Feels like a tax always looking towards the most valuable use could actually be very regressive and push anything but the richest out of economically attractive cities. Maybe I am missing something?

ok_dad 3y ago
I mean, it might be that there’s an empty lot outside your own home that could use some houses built on it but no one does because it’s easier to pay a pittance for taxes and leave it sit until it’s worth more. There are many cases where land could be put to better use but it’s not. A few people might get priced out of an area, but they’ll be able to sell their land and buy something elsewhere easily. The downside is certainly there but I think the upsides outweigh those.
- RandomLensman 3y ago
  Maybe. I'd like to see something like that run as a simulation over a city to see effects for varying high value uses.
Aunche 3y ago
Luxury apartments will depreciate into regular apartments over time. Allowing demand for luxury apartments to be pent up just means that rich people will capture more regular apartments instead.
- RandomLensman 3y ago
  Why would that happen? Demand will be satisfied as that would be the most high value thing to do, driving the land tax wherever the process starts.
  - Aunche 3y ago
    You mean why luxury apartments will become regular apartments? Most of the "luxury" apartments these days aren't really that special besides being newer and trendier. Of course, the truly iconic buildings will always be considered luxurious, but even the above average ones depreciate. In Manhattan, you can see a lot of buildings from a century ago with degraded ornamentation that would have been beautiful in their heyday, but they're actually more affordable than their neighbors that are plainer, but more renovated.
    - krisoft 3y ago
      It is clear that ornamentation is not what makes a luxury apartment. I would say the biggest component of a luxury apartment is the layout. A huge open space is amazing if you want to throw large parties, and can easily use up as much space as 3 studio flats. But the one huge luxury apartment will never realistically degrade into 3 studio flats.

ok_dad 3y ago

I mean, it might be that there’s an empty lot outside your own home that could use some houses built on it but no one does because it’s easier to pay a pittance for taxes and leave it sit until it’s worth more. There are many cases where land could be put to better use but it’s not. A few people might get priced out of an area, but they’ll be able to sell their land and buy something elsewhere easily. The downside is certainly there but I think the upsides outweigh those.

RandomLensman 3y ago
Maybe. I'd like to see something like that run as a simulation over a city to see effects for varying high value uses.

Aunche 3y ago

Luxury apartments will depreciate into regular apartments over time. Allowing demand for luxury apartments to be pent up just means that rich people will capture more regular apartments instead.

RandomLensman 3y ago
Why would that happen? Demand will be satisfied as that would be the most high value thing to do, driving the land tax wherever the process starts.
- Aunche 3y ago
  You mean why luxury apartments will become regular apartments? Most of the "luxury" apartments these days aren't really that special besides being newer and trendier. Of course, the truly iconic buildings will always be considered luxurious, but even the above average ones depreciate. In Manhattan, you can see a lot of buildings from a century ago with degraded ornamentation that would have been beautiful in their heyday, but they're actually more affordable than their neighbors that are plainer, but more renovated.
  - krisoft 3y ago
    It is clear that ornamentation is not what makes a luxury apartment. I would say the biggest component of a luxury apartment is the layout. A huge open space is amazing if you want to throw large parties, and can easily use up as much space as 3 studio flats. But the one huge luxury apartment will never realistically degrade into 3 studio flats.