News for hackers. Stuff that matters.

A comment on Raze, rebuild, repeat: why Japan knocks down its houses after 30 years. Parent comment

Re:Raze, rebuild, repeat: why Japan knocks down its houses a... by hudibras on Monday November 20, 2017 @07:14AM (#15739364)
1.2 million new housing starts in the U.S. annually, though.
[ Parent | on HN ]
Re:Raze, rebuild, repeat: why Japan knocks down its houses a... by brianwawok on Monday November 20, 2017 @11:31AM (#15741091)
Sure. Many are in cornfields in a small town.

So random area in my zip code:

https://www.zillow.com/mishawaka-in-46545/home-values/

It is basically flat over the last 10 years. If you go back further, it more or less matches inflation.

Now look at someplace people actually want to live, like Chicago

https://www.zillow.com/chicago-il-60614/home-values/

The value curve is much different.

So basically, it is the land that goes up. Your actual HOUSE value goes down a tiny bit every year. I.e. all else being equal, a brand new house sells for a bit more than a 40 year old house. But if that 40 year old house is on an amazing piece of land, the overall (house + land) value could very easily appreciate a LOT.

[ Parent | on HN ]