Land & Housing Model Playground

Move the policy and market assumptions. The land market, housing market, equilibrium, scarcity rents, tax incidence, and comparative-statics graphs update immediately.

Regime
Binding UGB
same regime as baseline
Homes / parcels
120.0
no change
Housing price
180.0
no change
Gross land value before LVT
100.0
no change
Net landowner receipt
100.0
no change
Zoning scarcity wedge
60.0
no change

Land market

Net after-tax price received by landowners

0048489696144144192192240240Parcels, QLandowner receipt, r
Demand Supply Baseline

Housing market

Buyer price and housing quantity

00486496128144192192256240320Homes, QHousing price, P
Demand Supply Baseline

What happens as capacity expands?

Holding all other current settings fixed

00486496128144192192256240320Residential capacity, Q̄Price / value
Housing price Gross land value before LVT Slack threshold

At Q̄ = 0, the endpoints are shadow/choke values: no homes or residential parcels actually trade.

Development-charge incidence

Who absorbs the next dollar of charge?

00406480128120192160256200320Development charge, τPrice / valueNo positive development
Housing price Gross land value before LVT Incidence switch

Where one homebuyer dollar goes

Per home; current scenario versus pinned baseline

Current
80
100
180.0
Baseline
80
100
180.0
ConstructionDevelopment chargeLVT revenueNet landowner receipt

Start with the article’s binding-UGB example

Capacity is 120 even though the unconstrained market would build 180 homes. Housing price is therefore set by scarcity at 180, and the gross land value before LVT is the 100 residual after construction.