The increase in an asset’s value over time.
U.S. homes have historically appreciated around 3–5% per year over long periods, though individual markets and decades vary wildly. Appreciation compounds — small annual rates become large over decades.
Example: $450,000 growing 3.5% annually is worth about $634,000 in 10 years.
FAQ
What is Appreciation in simple terms?
U.S. homes have historically appreciated around 3–5% per year over long periods, though individual markets and decades vary wildly. Appreciation compounds — small annual rates become large over decades.