> Most people don't realize that it is the
> land that is appreciating most, not the
> bricks, lumber, and nails that sit on top of
> the land.

> The cost of the improvements (labor and
> materials) appreciate at about the same rate
> as inflation. It's the value of the
> underlying land that is most affected by the
> swings in the cycles.

You can really see it when you compare the prices of houses over time to the prices of apartments.

In my area, apartment prices have gone up slightly over the last ten years. Stuff which was going for $120k ten years ago is now selling for maybe $180 at the top end.

Houses, on the other hand, have gone from prices around $150k up to $300k+ at the normal end.

There is also something else to consider in this regard... most people who buy houses buy to own. Most people who buy apartments buy to rent out.

Michael Ross