July 14, 2005 NPR
7 minutes 5 seconds
Another fascinating, counter-intuitive piece. Excellent for an urban or regional course. It could even be used to prompt an interesting discussion of “what determines value?” in a principles course.
The value of land is greater than the value of the house on it, so purchasers are buying the property and tearing down the house to rebuild with something bigger, even if the house is relatively new. Given the right market, “any house could be a tear-down.” The ideal candidate would be an older/smaller home on a larger lot. The lot can be subdivided for multiple homes or a McMansion can be put on the whole lot.