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Houses don’t go up in value. It’s the land. What makes a piece of land valuable is it proximity to work and leisure. Land in growing cities and towns should go
by enaaem 5y ago
Houses don’t go up in value. It’s the land. What makes a piece of land valuable is it proximity to work and leisure. Land in growing cities and towns should go up in value. The only way to make housing price constant is to give people the ability to tear down an old building and built something higher. That’s how cities like Tokyo have more stable housing prices compared to western cities.
- cletus 5y agoThat's simply not true. Houses have labour and material components. The materials have a labour component too. It's now more expensive to build a house (per square foot) than it was 30 years ago because of wage inflation. This is one reason why real estate is viewed as a good hedge against inflation.