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
An equivalent home that is new construction is likely more expensive than an existing home just as is the case for a car.
Houses appreciating in value is not some iron clad law of economics. Its principally due to a shortage in supply and, in the 2000’s and 2010’s, incredibly cheap/more available financing that made people willing to pay more.
More generally, the time horizon for a house is also much longer than a car. My house was built in the 70’s and, since then, people have increased their earnings and their willingness to pay. Over the ~10 years most cars last this effect is much less pronounced.
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