[dublinben]

It's illogical for the value of your land to decrease if your neighborhood has been substantially upzoned.

Instead of being able to fit a single house worth an imputed rent of $1000 on your lot, you'd instead be able to fit a duplex, renting for $600 + $600 = $1200. If supply has increased so much to lower equivalent rents a whopping 40%, then you're probably looking at a situation more like now being able to build a quadplex or small six-unit apartment building on your lot. At $600 x 4 = $2400 or $600 x 6 = $3600 you've actually seen the value of your land double or triple in this scenario.

In this hypothetical scenario you'll now have so much extra money, that you could easily move to more expensive, quieter neighborhood that hasn't been upzoned yet. If you're lucky, you'll be able to repeat the process there as well.

[noirbot]

Or you purchased a condo or townhouse where there's no way to sell the land under it or redevelop it without getting a large number of other people to all decide to move/leave at the same time.

If you're one of the first people in an upzoning neighborhood, you're the one who loses value as the rest of the area upzones.

The price to buy 1/100 of the condo/duplex/quad supply in a zipcode is almost definitely higher than in a few years when there's 1000 available. Sure, there's ways it could appreciate enough to offset it if it also becomes a nicer and more desirable neighborhood at a counteracting rate, but that's not for-sure.

This situation specifically screws the people who are doing what you'd want and not over-purchasing a single family home as an investment and instead buying a smaller part of some complex.