1. Value of land
2. Value of building in perfect order
3. Lost of value of building due to wear/tear etc.
If building/trades costs are rising #2 can rise too while #3 will counteract it, and it depends how much money is put into maintenance and renovations.
See the "almost" in "almost always". You can reduce the depreciation of a depreciating asset by putting money into it, sure, but that doesn't counter the point.
I agree there may be some weird inversions due to a spike in labor and/or material costs - but you wouldn't want to bet on it. The usual case is they are just losing value, and requiring injections of cash periodically.
1. Value of land 2. Value of building in perfect order 3. Lost of value of building due to wear/tear etc.
If building/trades costs are rising #2 can rise too while #3 will counteract it, and it depends how much money is put into maintenance and renovations.
Notwithstanding cultural issues with old houses.