3 ms·
I've never understood why people think houses should appreciate in value. Houses don't get "nicer" as they get older. Now, I understand that a neighborhood can
by RandallBrown 15y ago
I've never understood why people think houses should appreciate in value. Houses don't get "nicer" as they get older.
Now, I understand that a neighborhood can become more desirable, or the land where the house is becomes more constrained, but that doesn't apply to every house. I feel like most of America (outside the cities) has plenty of room.
I guess that's partly why the housing bubble collapsed? It was based on feelings or something?
- seanalltogether 15y agoThey should appreciate simply due to a growing population + currency inflation right? Beyond that I'm wondering if the average homeowner (not a real estate investor) actually sees a high appreciation.
- read_wharf 15y agoI'm no economist ... I think houses were appreciating while people were upwardly mobile in the economy. So not just more people, but more people with the means to buy a house (or borrow money for same). Now we're stagnant, and people are talking about the disappearing middle class, and housing prices are flat.
- sleighboy 15y agoIt collapsed because it was a bubble being pumped up by the Federal Reserve and its' "easy money" market manipulations. That is the flawed logic of a Keynesian system, that you can plan and manipulate a world economy. You can't, and thus we ride the roller coaster of boom and bust. It's been happening as long as the unaccountable Federal Reserve has been calling the shots.