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There is nothing bizarre about house appreciating despite being used when you realize that it's not the house that appreciate, it's the land. The land your hou

There is nothing bizarre about house appreciating despite being used when you realize that it's not the house that appreciate, it's the land. The land your house is build on doesn't get wear-and-tear, 100 years ago or 100 years from now it's still the same number of m2 of land. And it's getting rare because the population is still increasing and everyone want to live in the same big cities. If you find it ridiculous that everyone pays a fortune to live packed together (it kinda is) just buy a house in rural Alabama! It will be super cheap.

gtop3 4y ago
The value of a home is usually land value + improvements. The improvements might see some appreciation as raw material and labor prices increase, but most of the value is in the land. It is 100% reasonable to assume land prices will increase over time. No one is making any more of it, and the wealth and population of the country (also planet) continues to increase. An increasing amount of resources are bidding on a static amount of product. To put this in another way, if the value of land in the US was the same as it was 250 years ago then we would be giving it away by the square mile.
steveklabnik 4y ago
> If you find it ridiculous that everyone pays a fortune to live packed together (it kinda is) Different people have different preferences. I would (and do!) absolutely pay more to live "packed in with other people" than to live in a remote area for cheaper.