Gave the opportunity to explain why putting houses and hotels on the property makes sense even though it costs $200 for a house, but rent only goes up by $130.

Difference is, the $200 goes to the bank, the $130 comes from another player. So in relative terms, you just went up $260 vs. the competition.

Sometimes you're measuring your gains and losses in absolute terms. Sometimes you're measuring relative position vs. an opponent. So you can lose money, as long as the other guy loses more.