In some U.S. cities, the value of the land actually outweighs that of the house that sits on it. Realtor.com compiled a list of the top 10 cities where this is occurring, and not surprisingly, six of the 10 are in California. In San Francisco, for instance (the number-one city), 81 percent of the average home value in 2016 was attributable to land. By contrast, in St. Louis, Mo., land is only 10 percent of a home’s total value. In cases where land value exceeds structural value, it’s a good candidate not just for fixing up, but for tearing down—all the better to build new.
January 12, 2017