Then why do realtors do showings for multiple locations? It’s because the locations are substitutable, with buyers balancing price and amenities. Land is substitutable.
> confusing second and first order
Prices are a second order effect, not a first order effect (unless there’s price fixing). LVT makes land with amenities relatively less attractive, which lowers demand. Lower demand then moves the price, but the quantity demanded will still be lower since the demand curve has shifted down. This causes an exodus from urban centers to the periphery.
>property taxes disincentivize development
True. Assuming constant revenue, a move from property to land value tax would create a relative migration from city cores to a highly developed exurbia. If the LVT was high enough, we’d get single plot high rises with multistory garages only accessible by freeway surrounded by untouched nature reserves.
> Aassuming constant revenue, a move from property to land value tax would create a relative migration from city cores to a highly developed exurbia
At this point it appears you're just ignoring basic economics price sensitivity. Lowering overall taxes on a lot will not cause a migration from that lot.
I mean you can just keep repeating that phrase, but it doesn't then make it true. If you continue your argument that eliminating a tax on economic activity in an area will reduce the amount of activity in that area then there likely is little left for us to discuss.
Then why do realtors do showings for multiple locations? It’s because the locations are substitutable, with buyers balancing price and amenities. Land is substitutable.
> confusing second and first order
Prices are a second order effect, not a first order effect (unless there’s price fixing). LVT makes land with amenities relatively less attractive, which lowers demand. Lower demand then moves the price, but the quantity demanded will still be lower since the demand curve has shifted down. This causes an exodus from urban centers to the periphery.
>property taxes disincentivize development
True. Assuming constant revenue, a move from property to land value tax would create a relative migration from city cores to a highly developed exurbia. If the LVT was high enough, we’d get single plot high rises with multistory garages only accessible by freeway surrounded by untouched nature reserves.