The Value of Land: Analysis uses Park Slope, Brooklyn Heights as examples
When analyzing a new study by the Federal Housing Finance Agency that examines the ramifications of land value, the Washington Post used two upscale Brooklyn neighborhoods as examples.
The reason an acre of residential land in Brooklyn Heights or Park Slope costs about 7,500 times as much as an acre in Western Arkansas or Northern South Carolina is demand – the two Brooklyn neighborhoods are close to the subway, food-co-ops and high-paying jobs. Areas like the Slope or the Heights also “tend to have higher taxes and zoning restrictions,” the Washington Post reported.
Nationwide, according to the federal study, the value of the land tends to appreciate faster than the structures on them. “When housing demand changes, you can build more structures but you can’t build more land,” the Post quotes William Larson, one of the authors of the study, as saying.