[OPE-L:1828] Re: Do houses depreciate?

Gilbert Skillman (gskillman@wesleyan.edu)
Fri, 19 Apr 1996 06:28:01 -0700

[ show plain text ]

> A question of practical as well as theoretical significance:

Yes, even *immediate* practical significance, no?

> Do houses depreciate?

Yes. Unmaintained, houses tend to fall apart, or in.

> If they do, why isn't this reflected in their price?

Judging just from my local market, it is. But houseowners (often)
keep up maintenance--depreciation budget, if you'd like--and thus
there is no net physical depreciation to reflect in the price.