5 ms·
The house going up 20% is its own oddity. My living here doesn't attract more business or residents to the neighborhood, it doesn't really improve the value of
by 01HNNWZ0MV43FF 3y ago
The house going up 20% is its own oddity. My living here doesn't attract more business or residents to the neighborhood, it doesn't really improve the value of the land except for my fractional contribution to keeping a nice grocery store open nearby.
I suspect in many cases home ownership is just subsidized. Might be Director's Law at work. https://en.wikipedia.org/wiki/Director%27s_law https://en.wikipedia.org/wiki/Director%27s_law
- bombcar 3y agoIt a lot of factors but the main drivers are inflation and desirability. In places where the desirability is basically neutral, houses do what you would expect and “used” ones sell at a moderate discount to new construction.
- toomuchtodo 3y agoThey aren’t making more land.
- MisterBastahrd 3y agoLand is cheap. Location is expensive.
- bckr 3y agoAren’t they? Isn’t that what sprawl is? Obviously, not literally creating more physical land, but developing land into useable land. They’re making more useable land.
- pixl97 3y agoSprawl has its own cost growth function. Bigger roads, bigger water distribution, bigger sewers, bigger runoff, etc. And typically you develop the easiest and best land first then expand in the more and more difficult to develop. This inflates costs as time goes on.
- BirdieNZ 3y agoYou can't make more of unique locations. Dirt isn't the issue, it's location. Times Square doesn't use that much "land", but it's a unique, non-commodity location. Sprawl in NYC wouldn't create more Times Squares, so in this sense, "they aren't making more land". There's plenty of land in Siberia. There are very few locations that are in the middle of dense cities.
- dleink 3y agoIf not for suburban zoning laws from the 20th century there would likely be more midtown-style skyscrapers in NJ/LI/CT.
- paulddraper 3y agoThey are making more valuable/liveable land. Land itself is cheap as dirt. Level land in Wyoming for $350/acre (so $70/house at median lot size). [1] (Does it lack transportation, utilities, stores, schools, and jobs? Yes. Because those make land valuable.) [1] https://www.land.com/property/80-acres-in-Sweetwater-County-Wyoming/19493825/ https://www.land.com/property/80-acres-in-Sweetwater-County-...
- phkahler 3y agoHome prices have an inverse relationship with interest rates. Housing cost as a percent of income has been relatively stable in the U.S. lower interest rates mean you can borrow more for a given monthly payment. Interest rates had a 35+ year slide from 1980 to 2005. It's been really weird since then.
- staplers 3y agoMy living here doesn't attract more business or residents to the neighborhood On the contrary, try getting internet, sewer, water, electrical, or gas hookups in a rural area and let me know the cost.
- bombcar 3y agoIn fact, if you have a rural undeveloped plot of land amongst other undeveloped plots, and you pay to bring in electricity and gas or whatever, the properties around you will go up in value because now it’s cheaper to connect them up.
- mulmen 3y agoYou living there reduces supply.