What appreciation is
Price appreciation is change in what the next buyer pays—not cash in your pocket until a sale minus costs. It can lag inflation for long stretches.
Use ranges
Stress-test rent vs buy with 0% real appreciation and with higher rates. If the deal only works with heroic price growth, it is fragile.
Model conservative paths
Mistakes
- Using your realtor’s rosy chart as the base case.
- Ignoring that improvements do not always return dollar-for-dollar.
Use the calculator
FAQ
- Should I count on appreciation?
Budget carry costs you can afford without it; treat appreciation as margin of safety, not income.