Valuing Land: Less is More

Research indicates that the marginal value of additional undeveloped land in residential settings is low, as homeowners do not significantly appreciate extra space that cannot be utilized for building. This finding highlights the inefficacy of minimum lot size regulations, which compel buyers to acquire more land than they value. A critical observation is that while extra land holds greater significance for agricultural purposes, in the context of housing, it yields limited value, suggesting potential inefficiencies in land use and the opportunity for increased housing density in areas where regulations require larger lots.