[kevstev]

What is your mental model for this then? If the "2BR shack" can be built from scratch for 300k, and the value for the lot + shack is $3M, then the land value is $2.7M. Most expensive real estate is land value, not actual structure value.

[some_random]

I see what you're saying, my point is that the principle thing driving it's value isn't the land nor the shack, it's the regulatory framework of the area.