What characteristic of land increases its value in a good market?

The value of land in a good market is significantly influenced by various characteristics, and one of the key factors is its immobility. Land is inherently immovable, which means its location is fixed and cannot be changed. This characteristic plays a crucial role in determining value because desirable land, whether due to its location, natural features, or amenities, becomes more valuable precisely because it cannot be relocated.

When demand increases for specific locations—such as those that are near urban centers, have desirable views, or are in areas with good schools—properties in those areas appreciate in value. Investors and buyers often seek out land that is in a fixed and advantageous position, making immobility a fundamental aspect of real estate economics. By contrast, while accessibility and proximity to urban centers are important attributes, they are ultimately influenced by the immobile nature of land; without this permanence, the specific advantages offered by location would be unstable and transient.

The type of foundation, while relevant to specific properties, does not affect the overall value of the land itself in the same way that its immobility and location do in a fluctuating market.