13 September 2010

A Reversal of a Common LVT Example

One of the most common examples presented in support of LVT is the way that investment in public transport infrastructure can increase land values.

In a bit of a twist, The Wall Street Journal has an example of the effect working in reverse.  In New York, the Metropolitan Transportation Authority has cut some bus and subway routes, with the predictable result being a drop in property prices along affected routes.

Hat-tip to Stephen Smith at the Market Urbanism blog.

2 comments:

Mark Wadsworth said...

So?

The state is honour bound to do anything it can to increase land values (preferably at no cost to the landowners); and honour bound to compensate land owners it it ever does anything that reduces land values.

That's the Home-Owner-Ist ratchet at work.

They love negative LVT if land values fall (compensation) but they aren't too keen on positive LVT when land values rise.

Paul Lockett said...

Agreed