3 ms·
> So its value goes down, and with it the tax revenue The value of the buildings might go down, but I don't see why the value of the unimproved land (which LVT
by tome 2y ago
> So its value goes down, and with it the tax revenue
The value of the buildings might go down, but I don't see why the value of the unimproved land (which LVT is determined by) would go down.
- AnthonyMouse 2y agoBecause the primary reason people want the land is to build buildings on it. If you need one acre of land to build one housing unit because of zoning, there will be more demand for parcels of land than if you can build 50 housing units on one acre of land, because in the first case you need 50 times as much land for the same number of housing units.
- tome 2y agoThat doesn't sound right. In the limit, where you're forbidden from building anything on the land at all, the price will tend to zero. I'm not certain the relationship is linear, but if it is then it must be the opposite to what you claim.
- AnthonyMouse 2y ago> In the limit, where you're forbidden from building anything on the land at all, the price will tend to zero. That's the divide by zero case. 1/very_small_number is very large, 1/0 is undefined.