I just always assumed that this was common knowledge.
There has to be a better way to visualize this
I mean its multiple things.
The land iteslf is getting more expensive.
The houses are getting bigger.
The construction of houses is getting more expensive.
But yes, Land is the big one, and is why I’m a big fan of an LVT rather than just a straight property tax.
Are you saying the most important 3 things in real estate are location, location, location?
The way some places tax the value also different, i recall some places they included together both land and building, some calculate taxes on each individual assets
Isn’t this what Georgism aims to deal with?
hold up
assigning each inefficient house built on inefficient infrastructure its own piece of useless land made housing costs GO UP?!?!?!
There are caveats to this. Houses frequently have very little value appreciation and land in healthy urban areas appreciates relatively rapidly. The thing is, the replacement cost of the house appreciates at a similar rate to the land. So, if you wanted a new house on that land it would cost you multiples of an existing home.
Um yeah no shit it’s the land.
Still makes housing too expensive
It’s supply and demand. They stopped making land a while back…
I mean, they’re not making more land.
You mean with real estate it’s location, location, location?
I just don’t understand why most countries don’t have a land value tax. It’s such an obvious and efficient solution to so many problems.
I own a rent house and its appraisal value is now worth 10K less than a vacant lot on the same street. It costs about 10K to level the house and condition the lot. It’s effectively a “totaled” house.
2012 was still an extremely depressed year following the 08 crash.
The problem is nimby laws make it illegal to build dense housing on the land so you have less housing per unit of land so its both.
This is a macro view of a micro thing. There’s no fidelity or resolution here to give useful info.
It’s not the land. It’s the development rights.
I assume this is not comprehensive since Teton County, Wyoming is not represented in any way.
What is driving this though in a country with more land than it will ever need??
This is why we need a LVT
This is not even close to the full story. Cost of construction has soared.
I … I thought everyone knew this…??
That’s true here in Utah Valley
But it’s not really the land, is it? It’s the fact that you can put a house on that land. It’s about location. It’s not like people are buying the land to start little micro farms
It’s not the food, it’s the ingredients!
You can increase the value of your dirt if you get it rezoned for denser housing, too.
Land price is largely a function of population size. Phoenix for example grew by 30% over the last 12 years, ergo real estate prices soared.
Except the cost to have a house built is still insane and inflated.
Well duh – but building the copy/paste 5 bedroom large home on top of it still isn’t helping me.
Its funny how to an upper middle class guy in his 60’s this is assumed.
When you buy ” a house” you go to the closing and it CLEARLY SAYS you are buying the LAND. The house ? An improvement.
Buying a house is the best investment a regular person will do. It gets your family an asset with EQUITY. Lydia tells this all in BEATLEJUICE.
You live next to owners. Your kids go to school with people moving up. They go to college or open a business or become a plumber or whatever. They buy a better house.
Like the old saying goes, “Buy land; they’re not making anymore of it”
This is 100% correct in my area the actual building is mostly worthless unless it’s 10 years old or newer.
Empty SFH lot in my neighborhood 850k with a house on it 1-1.3 million depending on the house.
This is good supporting data for pushing back on the NIMBYS. As the value of the land goes up we need more density in critical areas, not increased zoning restrictions.
oh yeah wow ill just build my house in the air, good idea
![It’s Not the House, It’s the Land [OC]](https://www.europesays.com/wp-content/uploads/2024/11/46mly74h2j2e1-1920x1024.png)
37 comments
Source: [American Enterprise Institute](https://www.aei.org/housing/land-price-indicators/)
Tools: Adobe Illustrator, Tableau
I just always assumed that this was common knowledge.
There has to be a better way to visualize this
I mean its multiple things.
The land iteslf is getting more expensive.
The houses are getting bigger.
The construction of houses is getting more expensive.
But yes, Land is the big one, and is why I’m a big fan of an LVT rather than just a straight property tax.
Are you saying the most important 3 things in real estate are location, location, location?
The way some places tax the value also different, i recall some places they included together both land and building, some calculate taxes on each individual assets
Isn’t this what Georgism aims to deal with?
hold up
assigning each inefficient house built on inefficient infrastructure its own piece of useless land made housing costs GO UP?!?!?!
There are caveats to this. Houses frequently have very little value appreciation and land in healthy urban areas appreciates relatively rapidly. The thing is, the replacement cost of the house appreciates at a similar rate to the land. So, if you wanted a new house on that land it would cost you multiples of an existing home.
Um yeah no shit it’s the land.
Still makes housing too expensive
It’s supply and demand. They stopped making land a while back…
I mean, they’re not making more land.
You mean with real estate it’s location, location, location?
I just don’t understand why most countries don’t have a land value tax. It’s such an obvious and efficient solution to so many problems.
I own a rent house and its appraisal value is now worth 10K less than a vacant lot on the same street. It costs about 10K to level the house and condition the lot. It’s effectively a “totaled” house.
2012 was still an extremely depressed year following the 08 crash.
The problem is nimby laws make it illegal to build dense housing on the land so you have less housing per unit of land so its both.
This is a macro view of a micro thing. There’s no fidelity or resolution here to give useful info.
It’s not the land. It’s the development rights.
I assume this is not comprehensive since Teton County, Wyoming is not represented in any way.
What is driving this though in a country with more land than it will ever need??
This is why we need a LVT
This is not even close to the full story. Cost of construction has soared.
I … I thought everyone knew this…??
That’s true here in Utah Valley
But it’s not really the land, is it? It’s the fact that you can put a house on that land. It’s about location. It’s not like people are buying the land to start little micro farms
It’s not the food, it’s the ingredients!
You can increase the value of your dirt if you get it rezoned for denser housing, too.
Land price is largely a function of population size. Phoenix for example grew by 30% over the last 12 years, ergo real estate prices soared.
Except the cost to have a house built is still insane and inflated.
Well duh – but building the copy/paste 5 bedroom large home on top of it still isn’t helping me.
Its funny how to an upper middle class guy in his 60’s this is assumed.
When you buy ” a house” you go to the closing and it CLEARLY SAYS you are buying the LAND. The house ? An improvement.
Buying a house is the best investment a regular person will do. It gets your family an asset with EQUITY. Lydia tells this all in BEATLEJUICE.
You live next to owners. Your kids go to school with people moving up. They go to college or open a business or become a plumber or whatever. They buy a better house.
Like the old saying goes, “Buy land; they’re not making anymore of it”
This is 100% correct in my area the actual building is mostly worthless unless it’s 10 years old or newer.
Empty SFH lot in my neighborhood 850k with a house on it 1-1.3 million depending on the house.
This is good supporting data for pushing back on the NIMBYS. As the value of the land goes up we need more density in critical areas, not increased zoning restrictions.
oh yeah wow ill just build my house in the air, good idea
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