Chart of the Day: Land’s Share of US Home Prices

Via Visualizing Economics, here’s a cool chart showing the percentage of a home’s value that is tied up in land (as opposed to the house itself).

Here’s the chart:


The chart’s maker, Catherine Mulbrandon, doesn’t say much about this other than to point towards the dataset, which comes from the Lincoln Institute of Land Policy. You can see a correlation between real state bubbles and the land value as a percentage. In fact, the land value chart seems to reflect real estate bubbles even more than the Price Index, and as it shows, currently the US is only 10% off its 2005-6 housing bubble peak, up 9% from the low following the real estate crash.

Naturally, the Minnesota real estate market much less “heated” than the coasts.

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