Es ist nicht das Haus, es ist das Land [OC]

I just always assumed that this was common knowledge.

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.

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

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.

Still makes housing too expensive

I mean, they’re not making more land.

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.

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.

It’s not the land. It’s the development rights.

What is driving this though in a country with more land than it will ever need??

I … I thought everyone knew this…??

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

You can increase the value of your dirt if you get it rezoned for denser housing, too.

Except the cost to have a house built is still insane and inflated.