Considering how crazy expensive accommodations have become the last couple of years, concentrated in the hands of greedy corporations, landlords and how little politicians seem to care about this problem, do you think we will ever experience a real estate market crash that would bring those exorbitant prices back to Earth?
No. Appraisals and tax assessments have a land value and a “structural improvement” values. Both of these are added together for the purchase price.
If there’s a building on the land that’s not derelict and has utilities- it’s almost always going to be worth more than the land value by itself.
There are def certain zip codes and/or a very large plot of land with a single house on it where the inverse is the case (land being worth more than improvement) but that is not the norm.
My entire city burned down a year and a half ago. The burned lots were selling for over half the price as surviving houses, right after the fire. Like they were only 20-30% off. Most of the value is in the land.