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No value has been destroyed because the land and buildings are still there. There’s less demand for them than before so they can charge lower rents and the prop
by barry-cotter 4y ago
No value has been destroyed because the land and buildings are still there. There’s less demand for them than before so they can charge lower rents and the property will sell for less. But that’s because of better other options. The production possibility frontier has expanded, not contracted.
- seadan83 4y agoAs far as intrinsic value, you are correct, the buildings are just as functional as ever. But when it comes to extrinsic value, the extra value we place on something because it is desired, that is where value was lost.