Comment by epistasis

There's a really great way to think about this that doesn't get enough attention: land rents.

Some plots of land are very valuable due to their location, what you can access, etc. It's pretty straightforward to find out what the monthly cost of land is in any area, either from simple regressions on property values, or empty lot sales, etc.

When the land rent starts to excessively exceed average income of number of households allowed to live on that plot of land, that's pretty inefficient.

Owning land is society letting you say to other people: you're not allowed here. When we restrict land us so that people can not figure out their best use of it, eg 4 families building townhouses together, we start to restrict access to opportunity and basic economic freedom.