If houses depreciated like cars,wouldnt that solve most economic issues?

[Secure Da Bag]

fail to understand supply & demand, chatrehs

Get your inputs up GPT

 

[Gritsngravy]

This is the best reason google had as to why they dont depreciate


"A house is far more durable than a car and does not out of date every few years for 10% of its purchase price you can renovate a house and get 25–30 years value from those renovations."



If a bunch of homes were built in the 1980s and their original values were 80K. With depreciation, the value should be around 50K-60K now. The value of those homes shouldnt all be 120K. If you rennovate it,at best it should come back to its original value,maybe slightly higher. But this is why economics is a scam

Now that u brouhgt it up, how is housing increasing? Shouldn’t older buildings have less value?

And for the people who say it’s the land that appreciates, are we sure land is being valued properly?

 

[The_Sheff]

Now that u brouhgt it up, how is housing increasing? Shouldn’t older buildings have less value?

And for the people who say it’s the land that appreciates, are we sure land is being valued properly?

Older buildings are usually in better locations. Resources like access to public transportation, walking access to restaurants and leisure activities, short commutes to work etc…..are a priority now and living quarters with those local amenities are usually older.

Land next to nothing will not be worth more than land where lots of people with disposable income congregate.

 

[Day_Walker]

Houses do depreciate in value. It's the land they're sitting on that increases.

 

[Gunz&Butta]

Houses do depreciate in value. It's the land they're sitting on that increases.

Exactly, we can't make any more land without trying to reclaim the sea/ocean.