How Land Value Capture Funds Infrastructure in 2026

Episode 100 of The Business of Real Estate explores how municipalities are using land value capture to fund transit, parks, and affordable housing without raising broad taxes. Lucas and Luna break down the mechanics of value capture zones, using the Hudson Yards financing model as a concrete example—how $2.4 billion in bonds backed by future property tax increments paid for the extension of the 7 subway line. They discuss the risks: if projected appreciation falls short, bondholders bear the loss. The episode also covers smaller-scale examples like Portland's streetcar levy and London's Crossrail surcharge. Lucas explains the difference between tax increment financing and special assessment districts, while Luna pushes back on who really bears the cost: tenants or landowners. The hosts consider whether 2026's high interest rates make new value capture deals harder to underwrite. This is a focused, numbers-driven look at a public-private finance tool that's reshaping how cities grow. #LandValueCapture #TaxIncrementFinancing #HudsonYards #InfrastructureFunding #TransitOrientedDevelopment #SpecialAssessmentDistrict #PublicPrivatePartnership #MunicipalFinance #RealEstateFinance #UrbanDevelopment #PropertyTax #CrossrailSurcharge #PortlandStreetcar #BondFinancing #CommercialRealEstate #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo