Markets & Economy

Why land will always matter, micro-units or not

Looking at agricultural land for city-build use is absurd; here's why
  • Not all land is created equal -- land close to the seashore and within commuting distance in California is not like Colorado plains farmland.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Understanding real estate is hard. Partly because real estate has characteristics different from financial markets (each piece is unique, uniquely located and can’t be moved to a better market for sale), but in equal part because of the fantastic misinformation pushed at us by alleged experts, often authentic ones in other fields. Is land really a 'disappointing investment'? Consider Robert Shiller, professor of economics at Yale. Author of “Irrational Exuberance,” properly applying Tobin’s Q to the stock market bubble, which peaked in January 2000, predicting its burst, the book published on the day the bubble blew. Shiller then began to fancy himself a predictive expert on the irrationality of crowds (there are few, if any such experts on crowds -- we are all mere observers). He then further assumed that he is an expert in real estate -- it had a bubble, and his wisdom must apply there, too. Shiller teamed with Karl Case to create the S&P/Case-Shiller Home Price I...