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A comment on The paradox of soil: Land has returned as a constraint on growth. Parent comment

Re:The paradox of soil: Land has returned as a constraint on... by roymurdock on Thursday September 03, 2015 @03:18PM (#10166966)
LVT doesn't affect the supply side. Cities would need to reform zoning laws and deregulate building codes that specify maximum density.

The housing market is far from a self-regulating, equilibrium-seeking free market. It is very heavily regulated. Landlords would love to increase SF density so they could pack more people in while extracting NY-level rents. They can't because it's currently illegal.

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Re:The paradox of soil: Land has returned as a constraint on... by spangry on Friday September 04, 2015 @02:02AM (#10169013)
Although I agree it doesn't result in increased supply of land, an LVT results in more efficient allocation of existing supply, which is economically equivalent to an increase in supply holding allocative efficiency constant.

And I 100% agree on land-market regulations. It seems to be a similar story in most first-world economies: regulations are artificially constraining land supply, and also causing inefficient use of existing land.

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