Landlord Death Grip
If it feels like there’s no land left to be had, you might be on to something. It seems that while the rest of us were frittering away our paychecks on rent, some people were out buying land and the rest were managing their inherited land. Although property investment is not necessarily new, it’s buoyed by a fierce trend toward densely-populated locations. As this article in Bloomberg points out, when everything is located in the same place, it forces land prices to go beyond the value they actually produce.
There are possible solutions, some even in practice, such as the “Split Rate” property tax. But left untethered, it’s a good news, bad news story. The good news is that people living closely together in densely-populated locations consume resources more efficiently. The bad news is that if you don’t own land, you are potentially among the poor getting poorer. Dear Landlord, indeed.