alt Hacker NewsA new house makes every other lower quality house cheaper by providing an alternative. What matters is the total supply of the houses as good or better as the one you want.
A new house makes every other lower quality house cheaper by providing an alternative. What matters is the total supply of the houses as good or better as the one you want.
Assuming a perfectly efficient market sure. But in reality an expensive house next door raise the price of the cheap house next door because home prices are heavily influenced by the amount banks will loan, and appraisals are heavily influenced by nearby property values.
Plus other reasons like people want to live in good school districts and higher income areas tend to have better schools.