ABSTRACT
High land values are at the root of the housing crises in American cities. The preservation and protection of land prices is rooted in U.S. history and laws governing private property rights. Land-based tools such as the sale of public land, eminent domain and regulatory takings, land monopolies, rent-seeking, private covenants, land-use zoning, and property-secured lending have been used and misused throughout history to attain socio-economic objectives. It is a significant factor of production in housing but is also a bank for the wealthy that is contributing to global inequality. In California, the average land value in the highest priced counties has doubled within 5 years of recovery. Land values are determined by location, both within the city and in relationship to other cities, and to a large extent explain the variation in housing prices. Extrinsic factors such as city planning, rail transit, and distance from the central business district are some of the key price drivers. Over the long-term, cities where the growth machine is successful have their land values rise faster than inflation, which is why housing becomes unaffordable.
