4 ms·

The expectation that homes won't deprecate like most assets do is an anomaly.

by snotrockets 3y ago

EMCymatics 3y ago
Local and state governments suck every drop out of the three legged stool. Poor planning really.
conductr 3y ago
It’s not really depreciation, it’s the absence of surge pricing
joegibbs 3y ago
Is it though? The homes themselves do depreciate (nobody wants a 1970s house with no aircon that hasn't been repaired or renovated), it's just that the price of the land which the house is situated on increases faster, because it's not like the land loses any value from having somebody live there. The more people move into an area, the more demand there is for that land, so the more its price increases. The only reason you'd expect the price to decrease would be because people don't want to move there anymore because of new areas that are more desirable or something negatively impacts the desirability of the area.
- Shekelphile 3y ago
  This logic only works if you ignore the fact that housing prices have been juiced even in areas experiencing population decline and economic blight. I live in upstate NY and housing prices have tripled in my town despite no actual growth occurring here in decades, with more entry level jobs evaporating here every few years with local industries continuing the trend of closing up shop. It's also highly dubious that any land in SF can be considered higher value due to the rampant crime issues. I really don't understand how anyone would want to buy a home or live in one where there a daily risk to waking up to a home invasion, your car being pilfered through, literal human shit on your doorstep, etc. All in a place where cost of living is 2-3x higher than nearly every other part of the country. It's laughable.
  - birken 3y ago
    Generally speaking the people who live in SF aren't comparing SF to Boise, they are comparing SF to other elite cities like NYC, LA, Boston, Austin, etc. And the COL is not 2-3x higher in SF than those other cities. Also as a little story about how crime infested SF is, a couple years ago my wife accidentally left her key ring in the lock on our front door (which included car keys to a car right out front), where they stayed for the next ~18 hours, right in obvious public view from the street, until we noticed the next morning. And lo and behold the crime was so bad that the keys were right there the next morning and we had a nice laugh about it.

The expectation that homes won't deprecate like most assets do is an anomaly.

EMCymatics 3y ago

Local and state governments suck every drop out of the three legged stool. Poor planning really.

conductr 3y ago

It’s not really depreciation, it’s the absence of surge pricing

joegibbs 3y ago

Is it though? The homes themselves do depreciate (nobody wants a 1970s house with no aircon that hasn't been repaired or renovated), it's just that the price of the land which the house is situated on increases faster, because it's not like the land loses any value from having somebody live there. The more people move into an area, the more demand there is for that land, so the more its price increases. The only reason you'd expect the price to decrease would be because people don't want to move there anymore because of new areas that are more desirable or something negatively impacts the desirability of the area.

Shekelphile 3y ago
This logic only works if you ignore the fact that housing prices have been juiced even in areas experiencing population decline and economic blight. I live in upstate NY and housing prices have tripled in my town despite no actual growth occurring here in decades, with more entry level jobs evaporating here every few years with local industries continuing the trend of closing up shop. It's also highly dubious that any land in SF can be considered higher value due to the rampant crime issues. I really don't understand how anyone would want to buy a home or live in one where there a daily risk to waking up to a home invasion, your car being pilfered through, literal human shit on your doorstep, etc. All in a place where cost of living is 2-3x higher than nearly every other part of the country. It's laughable.
- birken 3y ago
  Generally speaking the people who live in SF aren't comparing SF to Boise, they are comparing SF to other elite cities like NYC, LA, Boston, Austin, etc. And the COL is not 2-3x higher in SF than those other cities. Also as a little story about how crime infested SF is, a couple years ago my wife accidentally left her key ring in the lock on our front door (which included car keys to a car right out front), where they stayed for the next ~18 hours, right in obvious public view from the street, until we noticed the next morning. And lo and behold the crime was so bad that the keys were right there the next morning and we had a nice laugh about it.