Bigger lots will trade at a premium
Leased a single-family rental on an acre in 2 days this week.
It got me thinking about what I'm actually buying when I look at a property with land.
The fast lease is the short-term payoff. Renters who want space, a yard, parking, room for a dog or a trailer, do not have many options anymore. So when one shows up they move on it.
But the part I care about more is the long game.
Look at what's getting built. Density, every time. Smaller lots, attached units, more doors squeezed onto less ground. That's the rational move for a builder.
The side effect is that real space stops getting made.
So a house on a real lot does two things at once. It rents faster today because so little of it is being built. And it holds value tomorrow because nobody can manufacture more land next to it.
That's a rare combination. Most assets are good for cashflow or good for appreciation. Land tends to quietly help both.
I'd rather own the thing that's getting scarcer than the thing everyone's building more of.
How do you view rentals on bigger parcels?
