Why Is Land Prone to Speculation?

The short answer is that the intrinsic value of land is so great that even gold can’t beat it. 

First, land is never amortized. Unlike buildings, land rarely suffers wear-n-tear, and this feature retains its value for perpetuity.

Second, land is scarce, especially developed land and urban land. Value of land decreases as it is located farther away from a city core.

Third, we all need land to build something on, either commercial, industrial, or residential. Without land, other economic drivers can’t exist.

That’s why community land trust and Georgism are very important to providing affordable housing. The first is to control ownership of land, while the latter is to control land use. Both are among the most effective tools for government.


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