3 ms·
I bet the land would be less expensive if more of the surrounding land contained higher-density housing.
by tshaddox 3y ago
I bet the land would be less expensive if more of the surrounding land contained higher-density housing.
- fragmede 3y agowouldn't that make it more expensive?
- beaeglebeachh 3y agoCounterintuitively, no. People by and large are buying a token for a build site. Look at any zoning area for SFH and a massive portion buy the least acreage they have to. By creating far more tokens the price spirals down, even though utility rises. The utility of land actually has a pretty weak link to its price. Take at the extreme of housing fitting into a pinpoint. No one even needs to buy your land even though it now has infinite housing utility -- even though essential it is abundant so it becomes cheap like water.