Ok. Then let me explain it to you more slowly.
Take a shitty house in a shitty neighborhood in Montana. Then take the same shitty house in a shitty neighborhood in Compton.
Which one costs more?
Hmmmmmmm, well surely they must be the same price if they’re the same shitty house, right? Right?! Well that’s actually incorrect. Let me show you why.
You see, people would rather be in a shitty neighborhood in Compton than in a shitty neighborhood in Montana. Since people would rather be in Compton than in Montana, you would see that the Compton house would sell for more money than the Montana house.
Isn’t that weird?! The same shitty house would sell for very different prices! Crazy huh?
Now why is that? It’s because people would rather be in a shitty neighborhood in Compton than a shitty neighborhood in Montana.
Nicer things cost more.
The same way that people are willing to pay more for a Ferrari than for a Corolla.
How’s that? All clear now?