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It doesn't economic make sense to build homes to last 100+ years. Equity markets have historically returned 8% per year. You're much better off cutting corners,
by dcolkitt 5y ago
It doesn't economic make sense to build homes to last 100+ years. Equity markets have historically returned 8% per year. You're much better off cutting corners, investing the money, then fixing the problems in the future with your compounded wealth.
Pretend you have two options, you can build a home that lasts forever or a house that will fall apart in a half century but is 10% cheaper. By year 40, you'll have enough wealth accumulated to buy two new replacement homes.
- oblio 5y agoThe problem with that logic is that once applied pervasively, as it is in the US, you end up with many places where you don't want to live.
- philwelch 5y agoSo you tear them down. Japanese housing, to name another example, is routinely torn down and replaced with new construction. The problem is that much of the US makes it needlessly expensive to do the "tear down and replace with new construction" bit.