That matches my expectation. There was a notable tendency for real estate to be a larger and larger fraction as I moved down the list, so I strongly expect real estate to dominate for smaller companies, and it certainly dominates for individuals. Though that’s “real estate” including both land and buildings; I would still guess that buildings are usually a larger component than land even for private individuals.
That last bit seems wrong to me bc the “good location” premium is so large, e.g. https://www.crackshackormansion.com/. Davis and Palumbo (2006) estimated land value as 50% of residential real estate value, up from 32% in 1984, and home prices in aggregate have continued to rise for the same reasons.
That matches my expectation. There was a notable tendency for real estate to be a larger and larger fraction as I moved down the list, so I strongly expect real estate to dominate for smaller companies, and it certainly dominates for individuals. Though that’s “real estate” including both land and buildings; I would still guess that buildings are usually a larger component than land even for private individuals.
That last bit seems wrong to me bc the “good location” premium is so large, e.g. https://www.crackshackormansion.com/. Davis and Palumbo (2006) estimated land value as 50% of residential real estate value, up from 32% in 1984, and home prices in aggregate have continued to rise for the same reasons.