Why Do Most People Think A House In A More Expensive Neighborhood Appreciates Faster?

Most plots of home prices use a linear y-axis. This leads to the often wrong conclusion that a more expensive neighborhood has greater appreciation.

If two houses were purchase at the same time with a 500K total cost, their combined appreciation would be the upper line. Starting with a higher initial investment returns a greater dollar return, but not a higher rate of return.

When you want to compare home price growth, the prices should be plotted on a log scale.

So what do Silicon Valley home prices look like when plotted on a log scale?

Silicon Valley real estate is shown at https://julianalee.com/silicon-valley/silicon-valley-statistics.htm

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