Astral Codex Ten

Redfin

11 min read

Redfin

Article

Redfin is a recurring organization in the Astral Codex Ten archive, appearing 2 times across 2 issues between December 09, 2021 and December 11, 2021. The archive places it in contexts such as “You can run a quick spot check by going on Zillow or Redfin in a major city”; “you could buy Redfin for about 1% of that and make their data available to researchers”. It most often appears alongside Albouy, Alexandra Elbakyan, Astral Codex Ten.

Metadata

  • Category: Organizations
  • Mention count: 2
  • Issue count: 2
  • First seen: December 09, 2021
  • Last seen: December 11, 2021

Appears In

Source Context

Recovered passages from the original issue text. When the raw archive preserved outbound links inside the source passage, they are listed directly under the quote.

Does Georgism Work? Part 1: Is Land Really A Big Deal?
December 09, 2021 · Original source
In 2020, all real estate in NYC was worth about $2.7 trillion, according to LendingTree (the land + the buildings). But let's go ahead and see for ourselves. You can run a quick spot check by going on Zillow or Redfin in a major city like New York or San Francisco. First, search for a vacant lot for sale in the heart of downtown, and note the asking price. Then look for a similarly-sized lot with a building on it that has sold within the last few years, situated next to the empty lot. The last selling price should be available. You can subtract one price from the other to get a rough estimate of the land share of the plot with the building on it.
Inline links: LendingTree, Zillow, Redfin
Here's a townhouse right next door that sold last year, situated on a lot of nearly the same size. We're ignoring the "Redfin Estimate"; all we care about is the "this home last sold for" figure at the bottom, which is about $2.4 million.
Does Georgism Work, Part 3: Can Unimproved Land Value be Accurately Assessed Separately From Buildings?
December 11, 2021 · Original source
See if you can improve on the state of the art. How close to ground truth can you get? Once the first study is done, you'd want to test it in another area–maybe Australia, Denmark, Germany, or the Philippines. If Georgism is true, and the only thing standing in the way is being able to pull off accurate assessments, then let's just get better at doing that. We're the species that split the atom and travelled to the moon. Surely we can handle this. 6.2. Total Land Value of the United States It's really annoying that we don't confidently know this figure, and it has huge implications for LVT policy. Technically, this is an "assessment" problem, but in practice, when you're assessing the entire USA, you're often falling back on big black-box buckets of aggregated property values rather than building a database of direct ground-truth market transactions yourself. In Part I, we saw how big the difference was between Albouy, who used pure land sales directly from the market, and Larson, who applied the cost approach to official figures. If one of you readers has MLS access for all 50 states and/or a bunch of other records, it'd be interesting to see if we could settle this debate once and for all. 6.3. A Push for More Open Real Estate Market Transaction Data To my knowledge, there's no good, one-stop shop for solid, historical, ground truth real estate market transaction data that's uniform and detailed across, say, the entire United States. I'm well aware of how important access to solid data is for researchers. I run a site called www.gamedatacrunch.com that just quietly scrapes public metrics from the PC video game store Steam (they don't mind–I asked). I'm constantly getting requests from researchers to dump slices from my DB for them, which I'm always happy to do. If not for making this data available, those research papers might not be happening. So many questions that are answerable in principle go unanswered in practice simply for want of access to data, and then smart people make bad policy decisions because of that ignorance. In principle, I suppose nothing would legally stop someone from scraping listing prices on Zillow and Redfin all day, every day, but I have a feeling I'd probably get sued if I did that. (Just checked with my lawyer; he says it's a legal grey area but probably wouldn't end well for me.) If you're an eccentric billionaire who wants to do something for Georgism, instead of building a $400 billion super city in the desert, you could buy Redfin for about 1% of that and make their data available to researchers. In any case, whether improved access to consistent, country-wide data were to come from data mining or repeal of real estate non-disclosure laws, it would be an invaluable resource for researchers. 6.4. Empirical examination of ATCOR If ATCOR (All Taxes Come Out of Rent) holds up empirically, it would be a super big deal. Then, it wouldn't matter whose land value estimates you accept, because you'd always be able to shift taxes off of income and capital and onto land without losing revenue. Mason Gaffney cites a few cases where it's supposed to have been observed, but we could really dig into this further. A claim this tantalizing really needs to be nailed down and resolved once and for all. 6.5. Responses to Comments I've been absolutely drowning in comments since the first article posted and there's no way I'll be able to address everything. Doing full justice to some of these will require their own entire articles, but I can leave some brief notes here. Zoning Many people replied that Land Value Tax is useless until or unless you first fix zoning. First of all, Georgists are natural allies in fixing restrictive zoning policies. This is something they definitely want and will fight for. Second, one of the reasons for restrictive zoning policies is broken incentives. A city doesn't have a huge incentive to repeal restrictive zoning policies because it isn't hurting their tax base. According to Georgists, a city whose tax base is land value has well-aligned incentives. It is incentivized to maximize land value by making the city a more desirable place to live, which also raises their tax base. It is dis-incentivized to over-assess or over-tax the land, however, because that will cause people to leave, which will lower their land values and also their tax base. One of the principle things that depresses land values and the tax base in this scenario is restrictive zoning. I personally don't care whether you first pass LVT or first repeal restrictive zoning, you can and should do both. Either one helps the other along. Transitional Politics Honestly this needs its own entire article without me going out on a limb and accidentally saying something dumb. Suffice it to say, a lot of smart people have spent a lot of time thinking about this, and you'll have to wait for a future article to find out what they are. I will let the commentariat duke this one out in the meantime. Corruption Some people agreed to all of the points raised in theory, but pointed out that human beings are wicked sinners, and LVT will be bent towards the malevolent will of our overlords, just like the old policies. And they're not wrong! The problem with this argument is that it's a fully general argument against change. The overlords game every system to their benefit. Rely on standardized tests? They'll game the SAT's with phony disability accommodations and outright cheating. Abolish standardized tests? They'll make their kids take fifty extracurriculars and pay a ghost writer to pen their college entrance essay about their life-changing volunteer work in Ghana. The right question is not "can the rich game this system?" but rather, "can they game it less than the existing one?" This is why you should keep standardized tests, even though rich people can and do game them. The evidence shows that on balance standardized tests are one of the few ways a minority student from a poor background even has a chance to move upwards. So let's dig in. The chief way you can game Land Value Tax is to cozy up to your local assessor and get them to say your land is garbage and it's not valuable. However, you have to do this kind of corruption in the open. Your land value assessment is public record, and highly visible on a map, and will stick out like a sore thumb unless the entire area has been corrupted too. I grant that motivated people could plausibly pull this off to various degrees. You might be able to get the assessor to lie about your land value, but what's the status quo we're comparing against? We don't even know how much cash money value is being socked away in Switzerland and the Caymans, let alone by whom. And even if we did, good luck figuring out how to lure that back to a taxable jurisdiction. Land at the very least can't run or hide. My dream is for us to commoditize open source mass appraisal systems and push for public real estate transaction records everywhere, so that organizations and educated members of the public can do their own land value audits at scale. And again, this is something that just needs to be subjected to empirics. We can sling theory back and forth at each other all day, but the proof is in the pudding. There are places that have done Land Value Tax in the past, and there are places that do it today. A good candidate for a future article is looking at case studies of where LVT has been tried and explicitly look for this problem. Finally, defeatism is corruption's best friend. If you believe everything I'm saying here, and your only obstacle is fear of corruption, and you accept that LVT's vulnerability to corruption is not any worse than the status quo's...then why not just get out there and fight for the world you want to see? Nothing good ever came without a struggle. Finally, we come to the most important comment of all. By George Some people said I did the whole "By George" schtick too much. I'm sorry you feel that way, but... by George, the people have spoken: 6.6. Future Direction This won't be my last article on Georgism, but I haven't yet decided whether to post them on my own blog, Fortress Of Doors, or some standalone site. Nor have I decided what topic should come next. In the comments, feel free to weigh in with which direction you'd like to see me go, as well as any issues you felt were unresolved to your satisfaction. Also, please point out any places where my math looks weird, I was just plain wrong, or where I have misunderstood or misstated the research I'm citing. Thanks very much to this readership and to our host, Scott, for graciously letting me share these findings with you. Acknowledgements: I would like to thank the following people and organizations without whom this series would not have been possible: My wonderful wife Emily, for everything
Inline links: www.gamedatacrunch.com, $400 billion super city in the desert, Redfin, 1% of that, real estate non-disclosure laws, cites a few cases, evidence, shows, he people have spoken, https://substackcdn.com/image/fetch/$s_!5S5P!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fd56e9475-5ec5-4122-a9c3-38eaa388d7e7_594x504.png, Fortress Of Doors