[lukeschlather]

The point of that comparison is separating the value of the lot from the value of the house sitting on that lot. The property value isn't going down, but the value of the home is dropping considerably.

The misleading thing may be that this is just standard depreciation, although I wouldn't be surprised if houses in the 3000-5000 sq.ft. bracket were depreciating faster than smaller houses. (Though it seems likely these numbers they stated were the simplest way they could find to say that they are depreciating at an unusually fast rate.)

[Spooky23]

I'm not sure I follow that logic. Lot value is difficult to assess and frequently wrong from an assessment standpoint.

The cost to tear down a McMansion that isn't depreciated way is very high, making the lots value questionable. Additionally, since tract housing is often identical in most ways, if your neighbors homes are going to shit and depreciating, that will impact the lot value too.