Wait! Is the actual problem we’re trying to solve “high rents”? From everything I’ve read, it’s “inefficient use of land”, in other words, failure to maximize land-rents collected, which are now taxed at a high percentage of theoretical value.
In some sense, bulldozing 10 single-family houses to build a 30-unit apartment does “reduce rent” on a per-unit basis, but it increases it on the land. As designed, as far as I can tell. It’s unclear what bulldozing them to build a datacenter does to rents, but that may be necessary if the powers-that-be decide that’s the income level needed to pay the taxes.
Wait! Is the actual problem we’re trying to solve “high rents”? From everything I’ve read, it’s “inefficient use of land”, in other words, failure to maximize land-rents collected, which are now taxed at a high percentage of theoretical value.
In some sense, bulldozing 10 single-family houses to build a 30-unit apartment does “reduce rent” on a per-unit basis, but it increases it on the land. As designed, as far as I can tell. It’s unclear what bulldozing them to build a datacenter does to rents, but that may be necessary if the powers-that-be decide that’s the income level needed to pay the taxes.