Sunk cost fallacy affects items worse the further away you get from the base of Exter's pyramid.  A house isn't like gold or silver which is both portable and virtually indestructable, it realies on numerous external factors like schools, crime, jobs, govt, etc.  They say Detroit is a clear case of, "a house is only worth as much as there are jobs there to support it".  That and most people don't want to live in a neighborhood where all 10 of your neighbors are named Tyrone.