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 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.