Spencer Heath Archive

Item 1056

 

 

 

 

1. Landowning is a business.

The income of this business is called (ground) rent.

Rent is paid for the use of the public services delivered to the land (location).

The amount of rent the owner can obtain for any location is determined by competition among prospective occupants or tenants and by competition among site owners to get tenants.

What governs the bid side of the market is:

1. The quantity, quality and scarcity /?/ of services available at the site.

 

2. The amount and kind of taxation and other public detriments that must be suffered by the occupant of the site.

 

3. The number of persons seeking sites furnished with public services.

 

4. The effective demand on the part of site seekers, depending upon their earning or producing capacity under all the conditions affecting their occupancy.

Some of the foregoing considerations /?/ are consciously deliberated, especially (1) and (2). Others, especially (3) and (4) are taken for granted as involved in the general situation affecting the bidders and their capacity to bid but are none the less effective in governing the bid.