Re:The Great American Single-Family Home Problem
by smsm42 on Saturday December 02, 2017 @02:35AM
(#15830772)
> meaning a 1500 sq. foot house won't be 1/2 the cost as a 3000 sq. foot house in the same neighborhood, but it will be lower and push down the average home value.
Average home value is largely meaningless if you are averaging substantially different houses. It only has meaning if we're talking about heterogeneous neighborhood or about something like a large area in rough comparison with another large area. Well, maybe not entirely meaningless as you still can get rough indicator of "price level", but useless in comparing the effect of this or that measure. It's like the reverse of the joke when Bill Gates walks into a pub and average income of everybody in the pub doubles. May be technically true but not a useful measure of anything.
Re:The Great American Single-Family Home Problem
by infinite8s on Saturday December 02, 2017 @05:13PM
(#15834466)
If Bill Gates walks into a bar the average person in the bar is now a billionaire (assuming about a moderately sized bar with 50 people in it).
Re:The Great American Single-Family Home Problem
by TheCoelacanth on Saturday December 02, 2017 @05:05PM
(#15834409)
> Bill Gates walks into a pub and average income of everybody in the pub doubles
That must be a really big pub or have started out with some very rich people in it to have only doubled.
If houses in a neighborhood were sold strictly on a price / sq. foot basis, there probably wouldn't be much devaluation, in fact you would probably get an increase valuation based the costs incurred to just build a house without regards to sq footage. (meaning the first $125K is the first 1000 sq feet and the 2nd 1000 is only $75K more.