The house itself also depreciates (although not to the same extent as a car might because it is a lot more durable), it's the land that the house sits on that appreciates.

It's "Supply & Demand:" As they say about land, "They're not making it anymore." Cars can, and will, always be supplied to match demand -- and they get "used-up" in just a few years. A house takes many years to get "used-up" -- and the land it sits upon is rather permanent and irreplaceable. Yet the demand for each house grows as the population increases -- and so the value goes up. In short, the population is growing faster than an existing house can depreciate, therefore the house costs more (due to increased demand), thereby giving the false impression that the house does not depreciate. However, all else being equal, the land beneath the house can only appreciate -- they're not making it anymore! So both the house and the land end up appreciating in value. Yet there's one other factor to consider: A viable economy. If people aren't employed and earning at least a modest income, they cannot afford a house -- and if that occurs widely, housing prices will fall to a level where people can buy them again. An expensive house for sale is pointless until somebody buys it.

Though a car's value decreases for about 20 years, after it becomes a classic, and is very rare, it becomes valuable and the price would go up. Take the classic Impala (64 is the most popular year), it's price has increased because it is popular.

All goods can appreciate and depreciate in value. Some cars, such as classic cars can appreciate in value, while some properties can get cheaper. In general, properties are appreciating because: The population is growing and everyone wants to live in the same space. It is impossible to house everyone in the best location and as a result the house prices appreciate. (High Demand and Low Supply = High Prices). But: If you live somewhere where people do not wish to live, due to inaccessibility, crime or any other factor, the house prices are likely to depreciate (Low Demand = Low Prices). In general, cars depreciate because: Companies produce cars in very small quantities to start off with so that only the richest people who are desperate to get the latest model, and are willing to pay, can do so. The price steadily drops for new cars so that more and more people are able to afford the new model. (Richest first though). As cars are a fashion and a technology product, when new fashions or technologies appear, the general public is more interested in purchasing the smartest, newest cars around (Decreased demand for old car and increased demand for new car). But: If you get a car, and it becomes extremely popular, many people are willing to pay more money to get hold of one (Increased Demand). Therefore the price will stay high for longer or in some exceptional circumstances the prices can even rise. In conditions like these, car manufacturers sometimes produce more, which in turn increases supply and reduces the cost (High Supply = Low Price).

“Why does the value of a house appreciate, While the value of a car depreciates?“ First I will discuss the validity of your question. The value of the house does not always appreciate. This is especially true if you consider the real value of the house. That is, if you discuss the value adjusted for inflation. On the average in the United States there is no real evidence that this is a true statement. Some pieces of land are in areas with high demand and with there as the population grows so does the demand for them. This is why the prices are bid up and the buildings become higher to get more income per square foot. One good example is New York city. If you want to see the opposite you can take a tour across the U.S to see hundreds of ghost towns where the demand to live there whether it was gold or industrial jobs no longer exists and people went on to find another piece of desert to make a town in. example central California. "The value of the car depreciates" I suspect that you are speaking about the value of the car in time. You must consider use which may increase in time, but you should also consider that some cars are parked in a temperature controlled environment with the utmost care. The value of any object is almost never dependent on time. Don't forget that cars also become classics after a while. So it really depends on the wear and tear and demand for the car. For example a new Testarossa is cheaper than a classic Ferrari given that the Ferrari has been well preserved. Finally, with these things in mind you can think of the following factors. A car’s price drops significantly after it has been owned. Most car’s are under 46% of its sticker price after 3 years and 36 thousand miles. Most house prices do not experience such depreciation. You probably would have to vandalize the house to do such damage. On the other hand significant losses in transaction costs are realized like 6% fees for the broker. If you bought your house at the end of the bubble like the San Jose Bubble of the late nineties, you may have realized some losses but these are extreme examples and I do not think they go to 46% percent I am and economist and a statistician, but I am not expert in the real estate market. I hope I am correct about the last paragraph.

Actually, houses do depreciate. All mechanical things, such as houses, lose value over time (though some people may disagree with this, "They don't build 'em the way they used to!"). But houses don't depreciate as rapidly as cars. What apprecites is the LAND; land appreciates at a greater rate than houses depreciate.

Let's not forget that a car is a consumable item. They are subject to wear and tear mechanically and electrically, and deteriorate through corrosion. After about ten years or so, a car is worn out and, therefore, has very little remaining value. The tiny handfull that make it as collector's items are the exception, rather than the rule. For every hot-selling automobile, there are a million rusted-out Chevettes. It's hard for something to retain its worth when it slowly returns to the earth from whence it sprang. Houses also deteriorate, but do so over a longer time period. With inflation, they may retain their value for a long period. The land under the home inevitably retains its value or increases in worth as time passes. Exceptions occur when land is unstable or subject to rapid natural deterioration.

In the accounting sense, land is non-depreciable. Since there is only so much land, it usually is what increases in value, not the house. The technology in most cars becomes outdated by newer models, so they usually depreciate as you drive them off the lot. Most people want newer and better.