When market rates drop, new market rate housing projects stall and die.

They stall and die more quickly than they start as market rates rise.

Because investment syndicates fall apart as anticipated rates of return fall, because bank loans are harder to come by, and because existing revenue streams shrink available funding.

Real estate economics is very unlike widget economics. The amount of land in desirable locations is fixed.

Which is why we should have a very high LVT so stalled projects don't keep land off the market until prices rise again.

The royal family is largest land owner in London.

I am not suggesting you were thinking of London.

I am saying that analogous forces exist elsewhere and are equally resistant to land reform in favor of unlanded peasants.

And by extension that most people are unlanded peasants. Even though they don’t think they are.

The Google hotel is for its unlanded peasants. Not the C-suite. The C-suite doesn’t want those people living in their neighborhood.

Is this comment attempting to say “fixing this problem will upset powerful people?”

I’m aware of that! But that has been true of most of society’s large scale positive transformations.

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