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You could say the say about renting vs buying houses, and yet many people still buy. The only reason a rental service is funded is because investors think they
by syrrim 9y ago
You could say the say about renting vs buying houses, and yet many people still buy. The only reason a rental service is funded is because investors think they can make more money than by selling mortgages. This will continue to be true for cars.
- JumpCrisscross 9y ago> You could say the say about renting vs buying houses, and yet many people still buy Cars and houses are excludable. And both are, within reasonable bounds, rival [1] when in use. But people customise their houses in ways that are difficult to transmit. That makes houses more rival when out of use than a car. That is to say, people are less comfortable staying in others' houses than being in others' cars. Similarly, people are generally more okay with others being in their car than in their house. A rough estimate of this delta can be gleaned from comparing ride-sharing and Airbnb adoption rates. [1] https://en.m.wikipedia.org/wiki/Rivalry_(economics) https://en.m.wikipedia.org/wiki/Rivalry_(economics)
- tachyonbeam 9y agoThere is a big difference between cars and houses, which is that houses tend to gain value over time, whereas cars drastically decrease in value. Driving is also time consuming and stressful. Dealing with maintenance, licensing, refueling, etc. are also annoying burdens.
- nradov 9y agoLand tends to gain value over time. Houses depreciate just like cars.