Sorry, but no. Land sometimes appreciate in value. The homes built on the land nearly always depreciate in value.
And when land appreciates in value (aka by being near schools, hospitals, and well-paying jobs), we distribute the higher cost of the land among multiple homes by building taller, denser types of housing. This is presently illegal in much of the US however.
Many SFH's here in Seattle are being torn down to build multiple 3 story town homes with no yards and rooftop decks (I live in one). They still go for a million, but there are plenty of people here with that purchasing power to buy them.
Still cheaper than a 2 bedroom apartment in Beijing.
Yep, tell me about. Part of the reason is that the market is still out of whack from decades of under-building. However, the bigger reason is that new homes have always been relatively expensive. The construction costs have to be immediately recouped for one thing, and they’re often located in more desirable areas.
The beauty of new homes is that they give the Amazon tech bro something to buy instead of coming into your neighborhood and bidding up the price of the older homes. That’s the good things about new homes: They help keep old homes cheaper.
> Part of the reason is that the market is still out of whack from decades of under-building.
In the USA, anyways, many people left the home construction industry after the 2008 crash, and didn't come back when things picked up again. That means...no apprentices were trained up, experience was lost, etc...so labor costs have shot through the roof because experience is quite limited.
And try even renovating an old home! You get quotes of like $150k just to do a kitchen.
And when land appreciates in value (aka by being near schools, hospitals, and well-paying jobs), we distribute the higher cost of the land among multiple homes by building taller, denser types of housing. This is presently illegal in much of the US however.