Quote:
Originally Posted by WhipperSnapper
Land value are ultimately capped on the allowable zoning. No one will pay
$40 million for a site that has a binding zoning policy for a maximum of 20 units. Isn't that the point of city planning to define densities that optimizes quality of life? The densities being built in Toronto are not conducive of a high quality of life with developers getting caught up in bidding wars and than receiving sympathy from staff to overbuild sites. Its still popular opinion on SSP/UT/etc. that these record setting densities should be increased to improve affordability. Infrastructure and amenity costs rise exponentially at higher densities.
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Land value does gets capped but it's not necessarily at a rate comfortably affordable to the average household income. At a certain point you've just restricted the number of people who can afford to live there, but haven't restricted demand. San Francisco is good example of that as the vast majority of the city and surrounding areas does have fixed zoning.
There needs to be a way of driving down demand, ideally without making it less appealing or an economic crash.
Houston works thus far by out building demand but commute time is starting to show as a significant pricing factor. People might settle on a 1 hour commute, but 2, 3 ... hours isn't appealing to most.