3 ms·
I've heard that usually the price of the land goes up faster than the price of the building goes down. But I guess if the building is unique or listed or has h
by GlennS 6y ago
I've heard that usually the price of the land goes up faster than the price of the building goes down.
But I guess if the building is unique or listed or has high enough build quality that it won't be knocked down in the foreseeable future, then maybe the building's price goes up to.
- reducesuffering 6y agoYou've heard correct because the building is depreciating/deteriorating about as fast as it's nominal $ value is inflating, so it's about a wash and the nominal $ stays flat long term. But the land is scarce and appreciates along with inflation AND productive use of housing. (peoples' same inflation-adjusted consumption of housing ends up using less and less land, like condos, and so the land appreciates even faster than inflation until population growth stalls.)