alt Hacker NewsConstruction companies can still turn a profit building and selling them. The idea is that houses should be depreciating assets, like cars. If houses are appreciating in value it means you're not building enough of them.
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s1artibartfast • yesterday at 5:41 PM
or that the cost to build them is going up.
Most houses do depreciate, or they require frequent expenses just to maintain their value which amounts to the same thing. There are occasionally exceptions to this rule in times of rapid construction price inflation but that's rare.
It's the land under the house that typically appreciates. Land is unlikely to depreciate unless the broader regional economy declines.