Why would you build on a plot of land when the plot of land itself is already appreciating in value with you doing nothing to it
Building is risky and costly
Having an asset that appreciates on its own regardless of what you do with it is not
Holding costs of land are far from $0 in any major metropolitan area. Sitting on it involves its own form of risk.
Vacant land that's desirable is often held back from development due to zoning or infrastructure issues.
> Vacant land that's desirable is often held back from development due to zoning or infrastructure issues.
Nah, it's mostly speculation. Zoning/infrastructure issues get baked into the price. If you cannot build anything on a plot of land, its price falls.
loading story #47437577
Sitting on it is a predictable cost, while building means a costly chaos which may or may not turn out the wished profitability. So when you are used to "old profits" you maybe rather wait on the predicted do-nothing-cost, and hope for the tide to turn again in your direction.