There was a question yesterday that generally stated cars lose their value so fast because people don’t know what the previous owner did. That’s fair, but why does that not relate to houses?
In: Economics
They don’t make new land, so the value of the land underneath can continue to gain value even if the house itself is in disrepair. This drives real estate values in a lot of high-value markets. It’s not the shanty shack in San Francisco that’s worth $700,000, it’s the land beneath it.
We make thousands of new cars every day, and so the old ones devalue quickly as they rust away.
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