Giles, please stop referring to your “plethora” of reasons as to why the state drives property values down as “eminent domain, etc.” It would seem to me that the only thing you have been able to come up with is eminent domain, and are just putting the et cetera to make it look like you have more. Please post all of your reasons, or at least a large majority of them.
Furthermore, your argument that eminent domain has any noticable impact on property values is incredibly weak. 80% of the people in this country don’t even know what eminent domain is, and there’s no way that it is factoring in to ANYONE’s decision to purchase land.
As has been said multiple times, but needs restating as you don’t seem to understand it, even if it’s true that property values would be higher in a free market, then rent would go up at the same amount. So your claim that rent would be more preferable in a free society is totally bunk. In addition to that, that claim defies all common sense, and is absurd on its face. Paying rent is like throwing your money into a furnace, you keep paying and paying, and when you finally move out…you have nothing to show for it. Home ownership, on the other hand, is an actual investment…it’s just like paying rent, except you are actually getting an asset in return. There is no reason for rent to be preferable in a free society.
As for proof that the state actually drives property values UP:
It is well known fact that the state created the housing bubble that just recently burst by limiting what land could be used to build houses on. This, of course, artificially limited the supply which in turn, artificially raised the price. Additionally, zoning codes obviously drives prices up as well.