Price Mechanism Recycles Obsolete Land

The price of land automatically recycles obsolete land use: as a city expands, demand pushes up the price of centrally located land that once held warehouses or old factories, prompting developers to redevelop it to higher density; in command economies like Russia and China where land 'belongs to the people' and has no price, removing an obsolete central-city factory appears as a cost rather than the benefit it is in a market economy.