What does scarcity in relation to land refer to?

Scarcity in relation to land specifically refers to the limited availability of land in certain areas. This concept highlights that land is a finite resource, meaning that there is a limited supply of land in desirable locations, which can lead to increased competition and higher prices. It emphasizes the idea that not all land is equally available or accessible to everyone, particularly in urban environments where demand is high. Consequently, the notion of scarcity is fundamental in real estate, as it influences market dynamics, property values, and development opportunities. Understanding this concept is crucial for navigating real estate transactions and strategies effectively.