The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: John Vosilla who wrote (91247)	10/4/2007 1:03:00 PM
From: oldirtybastard	Read Replies (2) of 306849

Houses over the long haul increase due to land constraints, rising costs of putting in infrastructure and impact fees plus much higher costs of construction more than offsetting the depreciating value of aging improvements.. I would argue that they increase in most places due to currency devaluation over time and homeowner psychology. In a few areas like NYC, what you say is true. Maybe letting in illegals is the master plan to create land constraints and further housing demand, because in most of this country I don't think those things exist. I wonder how much house prices have increased in detroit or cleveland in the last 25 years in real not nominal terms, I would bet not much. And construction costs would naturally come down if someone weren't trying to devalue the currency due to those involved in the overbuilding losing contracts/jobs and having to work for less or not work at all. So I still think the "natural" behavior of a house is the same as that of any depreciating asset, though inflation and all the various financial derivative rigs and props on which the US housing mkt is built fight this trend, doubt they can win in the log run.

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