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Ian_Ryan comments on Procedural Knowledge Gaps - Less Wrong
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But could you really have saved $100 by having decided to buy that same exact house except without that extra square foot?
Probably not. But, if you had rather less stuff, you could have probably bought a pretty similar house with one fewer closet for a few thousand less.
This. My housemates and I needed a three-bedroom apartment instead of a cheaper two-bedroom because some of them have so much stuff. Especially large furniture.
Yup, also, the incremental cost of space in a self-store unit is of the order of $1/month-ft^2, say $240/ft^2 capital cost at a 5% annual rate - and that is a true incremental cost. The more severe approximation is ignoring which items stack well and which don't, and ignoring the additional costs of maintaining the items, keeping track of them and so on.