Time is money and taxes are already amortized into any potential developer's math, regardless of what the rate nominally is. If the properties aren't economically developable in a "it costs us pennies to sit on them so we'll take our sweet time" paradigm then they're sure as shit not developable in a "I'm paying the same tax rate no matter what so I gotta put something up ASAP so I can a)get income b) sell" paradigm.
Those people are potentially treating it like an investment. If the cost to hold onto it for longer is very low, why not sit and wait until the value appreciates and a developer offers you more money in the future?
Increasing the cost to hold the investment might encourage sales at today's prices instead of waiting for years.
I'm not sure that helping developers buy land cheaper is the right solution or a complete one, but I do think increasing the cost of holding property as an investment would have an effect.
Or they double down and hold longer to "make it back" later when conditions are more favorable.
>I'm not sure that helping developers buy land cheaper is the right solution or a complete one, but I do think increasing the cost of holding property as an investment would have an effect.
We are all developers, comrade.
The more you increase costs the more you'll squeeze out the little guys leaving BigCos that DGAF and are copy pasting the same things everywhere with no regard because they're operating at the statistical level.
I don't mind taxing the BigCos more and more money to hold land.
When you own land, you have taxes, insurance, mortgage perhaps, upkeep etc. Easier to invest in stocks.
Anyhow, you have land with the idea that when the conditions warrant you can develop. Hopefully soon. But conditions may not develop quickly and you have to bear high holding costs.
At some point, it becomes free land for anyone willing to use it.
Assess the empty properties to their actual value, and then lower the overall rate.