There is only a finite amount of land. The land value will most likely rise with demand and inflation regardless of the building that is there. Owning a home

There is only a finite amount of land. The land value will most likely rise with demand and inflation regardless of the building that is there. Owning a home is an investment because you need a place to live and in the location on where you want to establish yourself. A home going up in value only helps a person on the side and hurts them in the short term because of taxes. Also only accounting for the downpayment is an incomplete investment picture. Most real estate is bought on leverage which multiplies returns. You cannot force people to think that the value of a building is zero just because you want it to be. We have seen new homes further out command very high prices here in the US because of culture and there are a lot that desire the fit and finish of a new home but for the most part the old homes are still desirable and livable. Eventually old homes are rebuilt or remodeled and if they sell at the lowest point (like after a fire) will be sold for land value.