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Homes and condo buildings in Japan aren't supposed to last more than 40 years. It's supposed to keep the national economy in a constant state of development (so
by peterwwillis 7y ago
Homes and condo buildings in Japan aren't supposed to last more than 40 years. It's supposed to keep the national economy in a constant state of development (sort of good) but it also means most people can't make a good long term investment off home ownership (which is bad). Either way, yeah, there's no incentive to renovate, because they won't be up for too long. On top of that, a lot of them need to be refurnished or rebuilt to be quake-proof, but it's not affordable, so they may opt to wait until the next big one brings it down.
- amluto 7y ago> it also means most people can't make a good long term investment off home ownership (which is bad) There’s a theory that homes being a good long-term investment is incompatible with homes being affordable. If true, then I would argue that it’s good, not bad.
- agent008t 7y agoWhy should homes be a good long-term investment? They do not produce anything and it costs to maintain one.
- dgacmu 7y agoUnder a rising population in a region, demand increases, which should increase the per sq. foot cost of housing, reflecting the need for denser living.
- Retra 7y agoIt costs a lot to build a new home or refurbish an unmaintained one. So if you're saving someone those costs, you are generating value for them.