why does land not depreciate?

Answer 1

Because land cannot be replaced. Whatever land we have available on Earth is never going to increase. It is a limited resource.

Answer 2

As more people come into the world, it becomes more valuable. It is a finite resource.

It would depreciate to a degree, if it once had a nice home sitting on it, and then it became a nuclear waste dump. Land can depreciate if the landuse of the land changes dramatically.

Answer 3

"why does land not depreciate?"
This phrase should only be connected to Property Appraisal. In appraisal of real property, land is never depreciated, structures on that land are.

Depreciation means: Loss of value due to any cause.

So, if you own a vacant lot somewhere and a neighbor opens a junk yard next door, then that neighbor is probably going to depreciate your real property.

Answer: Land can depreciate.

Answer 4

Land can be devalued. For example take Miami beach and turn it into a toxic and nuclear waste dump and watch the property values slump.

Generally speaking, land retains its value. It doesn't get worn out or need to be replaced.

Property and realestate have values set by the market.

Other things that don't appreciate are things such as paintings, gold and diamonds. Though I would assume industrial diamonds do depreciate. Industrial diamonds are used in industrial processes, such as mining. Over time the diamond drill bits will wear out.

Answer 5

For the same reason that a Stutz Bearcat Roadster in mint condition doesn't...there are an ever increasing number of buyers for a fixed number of autos...

Answer 6

Actually it can, and occasionally does, depending on the market environment and area. In general it does not because you can not make anymore or it, at least not very easily and as populations increase it becomes a scarcer resource.

Answer 7

Because they are not making any more of it!