INFLATION: CURBING INFLATION IN RESIDENTIAL LAND PRICES

THE AVAILABILITY OF LAND FOR NEW HOUSING, NEW PUBLIC FACILITIES, AND NEW ECONOMIC DEVELOPMENT IS A CRITICAL FACTOR IN DEALIHG WITH PROBLEMS OF URBAN GROWTH AND DEVELOPMENT. IT IS A PROBLEM OF BRINGING THAT AVAILABLE LAND INTO PRODUCTIVE USE AT COSTS WHICH DO NOT DISTORT OUR CAPACITY TO DEAL WITH OTHER PROBLEMS. IF THE PRICE OF LAND WERE INCREASING IN SOME REASONABLE RELATIONSHIP TO OTHER PRICES, PERHAPS THERE WOULD BE LITTLE NEED FOR PUBLIC CONCERN. BUT IN A TWENTY-YEAR PERIOD WHEN THE GENERAL PRICE LEVEL ROSE ROUGHLY 60 PERCENT, THE PRICE OF LAND ROSE ROUGHLY 400 TO 500 PERCENT IN DEVELOPING AREAS. AT A MINIMUM, THIS GROSSLY DISPROPORTIONATE RISE MERITS PUBLIC CONCERN AND QUITE POSSIBLY PUBLIC ACTION. IT IS THE THESIS OF THIS PAPER THAT THERE IS NO ABSOLUTE REASON WHY THE RISE IN LAND PRICES HAS TO BE ACCEPTED PASSIVELY. IN A LARGE MEASURE PUBLIC POLICIES CREATED THE CONDITIONS WHICH BROUGHT THIS INFLATION ABOUT AND PUBLIC POLICIES CAN BE USED TO STABILIZE IT. PART I EXAMINES THE QUESTION OF THE ADEQUACY OF THE LAND SUPPLY IN URBAN AREAS, THE TRENDS IN LAND PRICES, AND THE MAJOR FACTORS WHICH APPEAR TO AFFECT PRICE LEVELS. IT RAISES THE QUESTION OF WHETHER PUBLIC INTERVENTION TO AFFECT LAND PRICES IS DESIRABLE. PART II EXAMINES A RANGE OF PUBLIC POLICIES WHICH MIGHT AFFECT LAND PRICES AND AVAILABILITY AND SUGGESTS A SERIES OF ACTIONS WHICH MIGHT BE UNDERTAKEN BY THE FEDERAL GOVERNMENT TO DEAL WITH THESE. FOR THE MOST PART, THE RECOMMENDATIONS DEAL WITH FACTORS AFFECTING LAND PRICES IN DEVELOPING SUBURBAN AREAS, AND THE APPROACH IS TO CREATE A RANGE OF INCENTIVES TO MODIFY THE BEHAVIOR OF THE PRIVATE MARKET. FOR CENTRAL CITY OR OTHER BUILT-UP AREAS, WHERE EFFECTIVE PRIVATE MARKET ACTION IS LESS LIKELY, THE RECOMMENDATIONS SUGGEST STRENGTHENING THE URBAN RENEWAL MECHANISM. /AUTHOR/

  • Availability:
  • Supplemental Notes:
    • Vol 30, No 8, 19 PP, FIGS, 8 TAB
  • Authors:
    • Kamm, S
  • Publication Date: 1971-9

Media Info

  • Serial:
    • Urban Land
    • Publisher: Urban Land Institute
    • ISSN: 0042-0891

Subject/Index Terms

Filing Info

  • Accession Number: 00240054
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 10 1971 12:00AM